Aqa Economics Unit 1 And 2 Full Definitions

Front 1

Accelerator Effect

Back 1

The relation between the change in new investment and the rate of change of national income

Front 2

Actual Supply

Back 2

The amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absences etc

Front 3

Aggregate Demand

Back 3

Total planned expenditure in the economy known by the identity C + I + G + (X - M)

Front 4

Aggregate Supply

Back 4

The total value of goods and services supplied in the economy

Front 5

Allocative Efficiency

Back 5

This is achieved in an economy when it is not possible to make everyone better off without making someone worse off or you cannot produce more of one good without making less of another

Front 6

Balance Of Payments

Back 6

Exports minus imports - a deficit means more is imported than exported

Front 7

Balance of Trade

Back 7

Visible exports minus visible imports

Front 8

Balanced Budget

Back 8

Where government recipt equal government spending in a financial year

Front 9

Boom/Bust Policy

Back 9

The government using macroeconomic tools to stimulate and then contract economy

Front 10

Broad Money

Back 10

Money that is held in banks and building societies but that is not immediately accessible