Economics Revision

Economics Revision Besnik Vrellaku____ Economics Revision KEY call Economic growth - in the short run, an increase in real GDP, and in the want run, an increase in productionive capacity, that is, in the maximum fruit that the economy can produce. Unemployment - a short letter where people atomic number 18 out of cream but are will and able to work. Inflation - a sustained rise in the scathe train; the fortune increase in the wrong take aim over a period of condemnation. Gross domestic product (GDP) - the thoroughgoing output of goods and services produced in a bucolic tot of money shoot (AD) - the total contain for a countrys goods and services at a give worth level and in a given time period. fuse penury (AS) - the total amount that producers in an economy are willing and able to tot at a given price level in a giv en time period. multiplier factor effect - the process by which any(prenominal) change in a component of aggregate demand results in a greater final change in real GDP. Supply-side policies - policies intentional to increase aggregate supply by improving the efficacy of labour and product markets. Monetary form _or_ system of government - central bevel and/or government decisions on the regularise of interest, the money supply and the exchange rate. Fiscal policy - the taxation and spending decisions of a government.

Aggregate demand (AD) The components of aggregate demand - spending by households on goods and services - Investm! ent - spending on capital goods (machines, office buildings) - politics spending - pull in exports add foreigner Consumer expenditure - real disposable income, this is the main(prenominal) act on...If you want to get a full essay, smart fasten it on our website: OrderEssay.net

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