definitions

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the total amount that producers are willing and able to supply at a given price level in a given period of time
aggregate supply
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output, or production, of a good or service per worker per unit of a factor of production in a given time period
productivity
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transfer of assets from the public to the private sector
privatisation
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a situation where aggregate demand equals aggregate supply and real GSP is not changing
macroeconomic equilibrium
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the movement of spending and income throughout the economy
circular flow of income
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the services provided by the factors of production
factor services
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withdrawals of possible spending from the circular flow of income
leakages
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additions of extra spending into the circular flow of income
injections
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the process by which any change in a component of aggregate demand results in a greater final change in real GDP
multiplier effect
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the growth in aggregate demand outstripping the growth in aggregate supple, resulting in inflation
overheating
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the expected increase in potential output over time
trend growth
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Other cards in this set

Card 2

Front

output, or production, of a good or service per worker per unit of a factor of production in a given time period

Back

productivity

Card 3

Front

transfer of assets from the public to the private sector

Back

Preview of the front of card 3

Card 4

Front

a situation where aggregate demand equals aggregate supply and real GSP is not changing

Back

Preview of the front of card 4

Card 5

Front

the movement of spending and income throughout the economy

Back

Preview of the front of card 5
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