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Economics

Quizzes & Activities

Aggregate Demand and Aggregate Supply (Quizlet Activity)

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

This is a big part of the introductory macro course. Check your understanding of twenty-five key terms linked to aggregate demand and aggregate supply!

Start by learning as many of the key terms as you can using the activity below


Now test yourself using this quizlet matching activity



Some key terms to revise

  • Base interest rate: Set by the Bank of England in the conduct of monetary policy, it is the rate of interest used by commercial banks as the basis for their lending rates to the public.
  • Bond yield: The interest on a loan usually issued by governments and companies. Most bonds have a fixed date on which the borrower will repay the holder.
  • Budget deficit: Occurs when government spending exceeds the value of tax revenues in a given period.
  • Current account: Details nation's trade in goods and services with the rest of the world, as well as current transfers and income flows in to and out of a country from cross-border investments.
  • Deflation: A fall in the general price level signified by an annual inflation rate below 0% (negative).
  • Disposable income: Household income after deduction of taxes and the addition of benefits.
  • Economic growth: Long run increase in a country's productive potential
  • Economic well-being: Measure of welfare which includes inequality and non-material aspects of people's daily lives
  • Exchange rate: The value of one currency in terms of a second currency.
  • Foreign direct investment: Investment by firms in another country
  • Full employment: Where everyone who is willing and able to work at the current wage rate has a job, excluding those who are frictionally unemployed.
  • Gini Coefficient: A measure of income inequality within a population, ranging from zero for complete equality, to one if a single person has all the income.
  • Human Development Index: Composite measure of progress in raising income per capita, & improving education and health outcomes
  • Inflation: Annual rate of change of consumer prices
  • Original income: Earnings from jobs, pensions and savings
  • Post-tax income: Disposable income minus indirect taxes
  • Purchasing power parity: How many units of one country's currency are needed to buy the same basket of products with another currency
  • Real GDP: Monetary value of national output adjusted for inflation
  • Under-employment: People in part-time work who would prefer a full time job but cannot get one
  • Unemployment rate: Percentage of the labour force out of work

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