Lecture 8- Introduction to Macroeconomics

Aggregate demand- [blank_start]Total demand[blank_end] for final [blank_start]goods[blank_end] & [blank_start]services[blank_end] in an economy

Aggregate supply- [blank_start]Total supply[blank_end] of final [blank_start]goods[blank_end] & [blank_start]services[blank_end] in an economy

GDP measures [blank_start]national income[blank_end] of country over [blank_start]year[blank_end]

Inflation occurs when there is [blank_start]sustained increase[blank_end] in general [blank_start]prices[blank_end] of goods & services

Deflation occurs when there is [blank_start]fall[blank_end] in general [blank_start]price[blank_end] of goods & services

Real income shows [blank_start]nominal income[blank_end] adjusted for [blank_start]inflation[blank_end] to show its [blank_start]purchasing power[blank_end]

Consumer Price Index- [blank_start]Weighted[blank_end] index which measures [blank_start]inflation[blank_end] over given [blank_start]period[blank_end] in UK

Interest rate- [blank_start]Cost[blank_end] of [blank_start]borrowing[blank_end] money & [blank_start]reward[blank_end] for [blank_start]saving[blank_end]

Features of money are [blank_start]medium of exchange[blank_end], [blank_start]store of value[blank_end], [blank_start]unit of account[blank_end] & [blank_start]standard of deferred payment[blank_end]