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aggregate demand |
total demand in the economy made up of consumption, investment, goverment expenditure and net exports. |
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aggregate supply |
the total value of goods and services supplied in the economy |
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economic growth |
the capacity of the economy to produce more goods and services over time |
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gross domestic product |
the total value of goods and services produced in the economy |
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negative output gap |
whre the economy is producing less than its trend output |
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positive output gap |
when actual GDP exceeds trend GDP increasing inflationalry pressure |
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trade-off |
where one macro-economic objective has to be curtailed in favour of another objective |
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imports |
goods or services purchased from abroad |
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exports |
goods or services sold abroad |
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employment |
where labour is actively engaged in a productive activity usually in exchange for payments such as wages |
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unemployment |
those without a job but who are seeking work at current wage rates. |
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exporting |
the sale of goods or services to a foriegn country - generates income for the home country |
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importing |
the purchase of goods and services from abroad - leads to expenditure for the home country |
