Macroeconomics Key terms

Question	Answer
GDP	The total output produced by the economy, measured in money terms
Income method	Calculating everyone's income
Outcome method	Value of everything produced
Expenditure method	Money spent
Injection	Money coming in, represent spending on final goods/services
Withdrawels	Money leaking out, represent income earned by households
Real GDP	GDP adjusted for price changes (inflation)
Imports	Products of foreign origin brought into our country
Exports	Products of local origin sold to other countries
Government spending	Makes a significant portion of GNP, also known as public spending in Britain, the money the government spends for education etc
Saving	Portion of disposable income not spent on consumption of consumer goods
Taxation	Government finance their expenditure by imposing charges on citizens and corporate entities
Hidden economy	The illegal business of buying or selling goods
Economic cycle	General pattern goes expansion,peak,recession then recovery. All market economies repeatedly- measured by GNP
Boom	When an economy rises a lot, When there is low rate unemployment, rapidly increasing consumer prices (inflation)
Recession	A period of at least 6 months when an economy suffers a fall in output
Inflation	An increase in the price of goods that is representative of an economy as a whole
Aggregate Supply	The total output producers are willing and able to supply at different price levels in a given time period

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	Created by lucyhacking about 11 years ago