Flashcards
Definitions
Flashcards do conjunto (12)
- 1ConsumptionThe total planned spending by households on real output produced within the economy.
- 2InvestmentThe total planned spending by firms on real output produced within the economy.
- 3Interest RateThe rewards for lending savings and the cost of borrowing.
- 4Personal Savings RatioThe actual personal savings divided by personal disposable income.
- 5Accelerator EffectA change in the level of investment in new capital goods induced by a change in national income.
- 6Long Run Aggregate SupplyThe economy's productive capacity.
- 7Supply side shockSomething that will either increase or reduce the costs and hence the supply side of all firms in an economy
- 8The 6 Determinants of Consumption1.Interest rates
2.Level of disposable income
3.Future expectations of income
4.Wealth
5.Consumer confidence
6.Availability of credit - 9The 4 Determinants of Investment1.Expectations of entrepreneurs and investors
2.Interest rates
3.The nature of technological progress
4.Relative price of capital and labour - 10Factors affecting Short Run Aggregate Supply1.Wage rates
2.Interest rates (banks)
3.Import prices (Raw materials etc)
4.Corporation Tax - 11Factors affecting Long Run Aggregate Supply1.Technological progress
2.Attitudes and Enterprise
3.Macroeconomic Policies
4.Productivity (eg Labour)
5.Capital investment - 12What is aggregate demand?The total planned spending on real output produced in an economy.
C + I + G + (X-M)
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- Economics FlashCards sobre Definitions, criado por david.b.smith33 em 15-04-2013.
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- david.b.smith33
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