terminology
examines the behaviour of individual decision making units in a economy
microeconomics
Increase in consumer expenditure
Increases aggregate demand
The total output that producers in an economy are willing and able to provide at a given price level in a given time period
Aggregate supply
Cost per unit of output
Average cost
Export is a withdrawal from the circular flow of income
False
Total output measured in constant prices
Real GDP
A decline in GDP over at least two consecutive quarters
Recession
The J-shaped macroeconomic curve
Keynesian aggregate supply curve
He advocated government intervention to achieve full employment
John Maynard Keynes
An increase in saving means production will fall.
True
Total output measured in current prices
Nominal GDP
Shift in PPC
increase in productive capacity/ potential growth
Large and unexpected changes in short-run aggregate supply
supply side shocks
More women entering the workforce will be shown in the AD-AS diagram as...
A shift in LRAS
The circular flow of income shows the composition of aggregate demand
False
The measure of comparing price level over time
Price index
Increase in imports
reduces aggregate demand
An increase in demand only causes prices to rise without increase in GDP
Aggregate supply is inelastic
The total output of a country supplied in a period when prices of factors have fully adjusted
LRAS
The price index of all domestically produced output
GDP deflator
Aggregate demand meets aggregate supply
Macroeconomic equilibrium
As price level increases the gap between input and output prices widen
profit effect
Private sector spending by firms on capital goods
Investment