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AD - C + I (CIE)

AD- C + I

AD- G + (X-M)

AD/AS Model

Aggregate Supply


Basic Concepts-Central Ideas (demo)

Basic Concepts-Resources (FOP) (demo)

Business Cycle

Business- Sectors of the Economy


Circular Flow Model- Basic ideas

Circular Flow Model-Full Model

Consumer/Producer Surplus-Basics

Consumer/Producer Surplus-Price Controls

Consumer/Producer Surplus-Subsidy

Consumer/Producer Surplus-Tax

Cost-Benefit Analysis (CBA)


Demand-Basics Concepts



Economic Growth-Causes/Costs & Benefits

Economic Growth-Different Measures

Economic Growth-Savings/Investment

Economic Systems

Efficiency-Pareto Efficiency

Elasticity-Calculations (Ep, Es, Ey & Ex)

Elasticity-Cross (CED)

Elasticity-Demand, Basics

Elasticity-Demand, Calculations/Uses

Elasticity-Income (YED)

Elasticity-Supply, Basics

Elasticity-Supply, Calculations

Exchange Rates-Basics

Exchange Rates-Forex Market

Exchange Rates-J Curve


Fiscal Policy


Inflation-Causes of

Inflation-General Price Level Changes


Inflation-Quantity Theory of Money (MV=PQ)

Inflation-Real Values


Labour Market-Basics

Labour Market-Changes


Market Equilibrium-Basics

Market Equilibrium-Price/Output changes (Advanced)

Market Failure-Consumption Externalities

Market Failure-Production Externalities

Monetary Policy



Price Controls-Maximum Price (demo)

Price Controls-Minimum Price

Private Goods and Public Goods

Production & the Production Process

Production Possibility Curve-Basics

Production Possibility Curve-Shifts/Uses


Sales Tax and the Market

Sales Tax Incidence

Subsidy and the Market

Subsidy Incidence

Supply-Basics Concepts




Trade Unions

Trade-Changing Pattern of Trade

Trade-Comparative Advantage

Trade-Components of the Balance of Payments

Trade-Current Account Deficit

Trade-Free Trade

Trade-One Country Trade Model

Trade-Terms of Trade

Trade-Two Country Trade Model

Transition Economies


Unemployment-Causes of/Types

Unemployment-Impacts & Policies


Glossary of Terms

Each Glossary Term relates to a parent topic above.


Absolute advantage

Actual Employment

AD/AS Model

Advantage of a subsidy

Advantages & disadvantages of batch production

Advantages & disadvantages of flow (mass) production

Advantages & disadvantages of job production

Advantages of a maximum price

Aggregate Demand

Aggregate Supply

Allocation & ownership of resources in different economic systems

Allocative Efficiency

Allocative efficiency and a PPC

Anti-inflationary policies & unemployment


Assumptions made about a PPC

Average Tax Rate


Balance on Current Transfers

Balance on Goods

Balance on Income

Balance on Services


Batch production

Best measure used to determine future output

Best measure used to determine quality of life

Black market & a maximum price

Bowed Production Possibility Curve

Business Cycle


Calculating cross elasticity of demand

Calculating income elasticity of demand

Calculating price elasticity of demand

Calculating supply elasticity

Calculating the Terms of Trade

Calculating the value of consumer surplus

Calculating the value of producer surplus

Calculations & a maximum price

Calculations & a minimum price

Capital Intensive

Capital Resources

Causes of changes in the current account

Causes of changes in the exchange rate

Causes of unemployment

Ceiling Price


Central Bank

Ceteris Paribus

Changes in components of the quantity theory of money and the impact on inflation

Changes in price and output

Changes in the AD/AS Model

Changes in the business cycle & inflation

Changes in the velocity of circulation & inflation

Charging for a Public Good


Clean Float

Collective Good

Command economy

Comparative advantage

Comparing a value over a number of years

Comparing a value within a year


Complements and CED

Components of the quantity theory of money

Concerns over a current account deficit

Constant Values


Consumer confidence and AD

Consumer Demand

Consumer Price Index (CPI)

Consumer Surplus (CS)

Consumer Surplus-basics

Consumer Surplus-Maximum Price

Consumer Surplus-Minimum Price

Consumer Surplus-Subsidy

Consumer Surplus-Tax

Consumption Spending (C)

Consumption spending-the two sector model

Cost Benefit Analysis-Worked Example

Cost Push Inflation

Cost push inflation- exchange rate depreciates

Cost push inflation- increase in indirect taxes

Cost push inflation- increase in wages

Cost push inflation- net migration loss

Cost push inflation- price of inputs increase

Cost to Government of a Subsidy

Costs of Production

Costs of production & the AS curve

Cross Elasticity of Demand

Current Values

Cyclical Unemployment


Deadweight Loss-Maximum Price

Deadweight Loss-Minimum Price

Deadweight Loss-Subsidy

Deadweight Loss-Tax

Deadweight Loss/Allocative Efficiency

Decrease in quantity demanded

Decrease in quantity supplied



Demand curve and a range of elasticities

Demand elasticity

Demand for foreign exchange

Demand for Labour

Demand for labour curve-shifts

Demand Pull Inflation

Demand pull inflation- government operating (budget) deficit

Demand pull inflation- reduction in direct taxes

Demand pull inflation-falling exchange rate (depreciation)

Demand pull inflation-interest rates fall

Demand pull inflation-net migration gain

Demand schedule

Demerit Good



Derived demand

Deterioration in the current account

Determinants of Demand

Determinants of Supply

Dirty Float

Disdvantage of a subsidy


Distinguishing between price & cost

Division of Labour (DOL)

Double Coincidence of Wants


Economic concepts illustrated by a PPC

Economic Goods

Economic Growth

Effects of Growth

Elastic Demand

Elastic demand and incidence of a subsidy on buyers & sellers

Elastic demand and incidence of a tax on buyers & sellers

Elastic supply

Elasticity and the slope of a demand curve

Elasticity and the slope of a supply curve

Elasticity of supply-Long Run Time Period

Elasticity of supply-Momentary Time Period

Elasticity of supply-Short Run Time Period


Equation of Exchange


Equity Efficiency Trade-Off

Equity/Efficiency trade-off

Excess Demand

Excess Supply

Exchange Rate Diagram

Exchange rates & the AS curve

Exchange rates & the BOP

Exchange rates-calculating earnings for exporters

Exchange rates-calculating payment for importers

Excludable by price

Expansionary fiscal policy

Expenditure-dampening policies

Expenditure-switching policies

Export Price Index

Exports one country model

Exports two country model

Externalities of Consumption

Externalities of Production


Factors of Production

Factors that can influence the level of unemployment

Factors that determine supply elasticity

Factors that Influence Investment

Factors that Influence Savings

Factors that influence the size of the labour force

Favourable movement in the Terms of Trade

Features of a demand schedule

Features of products that are elastic in nature

Features of products that are inelastic in nature

Financial Intermediaries

Firms and Inflation

Firms Sector

Fiscal drag

Fiscal Policy-contractionary

Floor Price

Flow (mass) production

Fluctuations in Economic Activity

Foreign Sector

Free Goods

Free Trade

Free trade-exports

Free trade-imports

Free-Rider Problem

Frictional Unemployment

Full employment and the natural rate of unemployment

Functions of Money

Funding a current account deficit




Government and the current account

Government Budget Deficit

Government Budget Surplus

Government Sector

Government Spending

Government Spending (G)

Government Tax Revenue

Growth-Costs & Benefits



Hard landing


Horizontal World Supply Curve

Household attitude and AD

Household income and AD

Household Sector

Household-the two sector model

Households and Inflation

How changes in the Terms of Trade come about

How to calculate the labour force

How to calculate the labour force participation rate

How to calculate the unemployment rate

How to calculate the value of consumer spending

How to construct a demand schedule

How to derive market demand

How to derive market supply

How to illustrate a per unit sales tax

How to illustrate a per unit subsidy

How to illustrate a price change on a demand curve

How to illustrate a price change on a supply curve

How will it be produced?

Human Resources


Impact of a subsidy on consumers

Impact of a subsidy on producers

Impact of an indirect tax on consumers

Impact of an indirect tax on producers

Impact of deflation on various groups

Import Price Index

Importance of events for growth

Imports one country model

Imports two country model

Improvement in the current account

Improving productivity

Improving productivity-Division of labour

Improving productivity-Specialisation

Incidence of a Sales Tax

Incidence of a Subsidy

Income elasticity and the importance of the coefficient

Income elasticity of demand

Increase in quantity demanded

Increase in quantity supplied

Increased savings & unemployment

Increased wage demands & unemployment

Indirect Tax

Individual demand

Individual Price Rise

Inelastic Demand

Inelastic demand and incidence of a subsidy on buyers & sellers

Inelastic demand and incidence of a tax on buyers & sellers

Inelastic supply

Inequality and taxes

Inferior Goods and YED


Inflationary expectations and AD

Inflationary Gap


Interdependence-the two sector model


Interest Rates

Interest rates and AD

Interest rates and the exchange rate

Interest-reward for capital resources

Investment (I)

Investment Spending (I)

Investment-the two sector model


Invisibles (BOP)

Involuntary Unemployment


J Curve effect

Job production


Labour force & the AS curve

Labour force participation rate

Labour Intensive

Lack of qualifications & unemployment

Law of Demand

Law of Supply


Legal and institutional reforms-transition economies


Limited Means

Link between greater savings or capital goods & living standards

Link between saving & investment

Luxuries and YED


Macroeconomic stabilisation-transition economies

Marginal Tax Rate

Market Demand

Market Economic System

Market Supply

Maximum Price Control

Measures of Unemployment

Merit Good

Mid-point method to calculate cross elasticity of demand

Mid-point method to calculate income elasticity of demand

Mid-point method to calculate price elasticity of demand

Mid-point method to calculate price elasticity of supply

Minimum Price Control

Minimum Wage

Mixed Economic System

Monetary Policy

Money flows-two sector model

Movements along a Demand Curve

Movements along a Supply Curve



Natural Resources

Necessities and YED

Negative (disadvantages) outcomes of economic growth

Negative cross elasticity of demand

Negative Externality of Consumption

Negative Externality of Production

Negative impacts of a trade union

Net Exports (X-M)

Net Social Welfare

Nominal GDP

Non-excludable by price

Non-Renewable Resources


Normal goods and inferior goods

Normal Goods and YED


Obstacles to growth

Official Cash Rate (OCR)


Opportunity Cost


Pareto efficiency

Pareto gain (improvement)

Pareto inefficent

Peak (boom)

Percentage method to calculate cross elasticity of demand

Percentage method to calculate income elasticity of demand

Percentage method to calculate price elasticity of demand

Percentage method to calculate price elasticity of supply

Perfectly inelastic supply

Planned Economic System

Policies for negative externalities of consumption

Policies for negative externalities of production

Policies for positive externalities of consumption

Policies for positive externalities of production

Policies on unemployment

Policies to promote free trade

Policy Target Agreement (PTA)

Polluter-Pays Principle

Positive (advantages) outcomes of economic growth

Positive cross elasticity of demand

Positive Externality of Consumption

Positive Externality of Production

Positive impacts of a trade union

PPC illustrating a decision to produce more capital goods

PPC illustrating a decision to produce more consumer goods

PPC illustrating an increase in productive capacity

PPC illustrating an increase in real GDP


PPC-Opportunity cost



Price elasticity of demand

Price elasticity of supply

Price per unit a firm receives with a sales tax

Price per unit a firm receives with a subsidy

Primary Sector

Private Good

Problems facing transition economies


Producer Surplus (PS)

Producer Surplus-basics

Producer Surplus-Maximum Price

Producer Surplus-Minimum Price

Producer Surplus-Subsidy

Producer Surplus-Tax

Producer-the two sector model


Production efficiency and a PPC

Production Possibility Curve

Productive Capacity


Productivity/technology & the AS curve


Profit-reward for entrepreneurship

Progressive Tax

Property Rights

Public Good


Qualities of Money


Real flows-two sector model

Real GDP

Real Income

Real Values

Reason for a bowed PPC

Reason for a straight line PPC

Reason for the downward slope of the demand for labour curve

Reason for the slope of the supply of labour curve

Reasons for a free trade agreements

Reasons for a maximum price

Reasons for a minimum price

Reasons for a shift of the demand for labour curve

Reasons for a shift of the supply of labour curve

Reasons for an increase in productive capacity

Reasons for free trade

Reasons why government imposes taxes


Recessionary Gap

Regional and skill-based mismatch & unemployment

Regressive Tax

Related Goods

Relationship between the Terms of Trade & the current account

Removing a tariff

Renewable Resources


Rent-reward for natural resources


Restructuring and privatisation-transition economies

Revenue method to calculate price elasticity of demand

Rival (or depletable)


Savings (S)

Savings and Inflation

Savings-the two sector model


Secondary Sector



Setting (establishing) an exchange rate

Shape of a PPC

Shifts of the AD Curve

Shifts of the AS Curve

Shifts of the Demand Curve

Shifts of the Supply Curve


Social (external) benefits-CBA

Social (external) costs-CBA

Soft landing

Sources of Government Revenue


Sticky wages

Straight Line Production Possibility Curve


Structural Unemployment



Substitutes and CED

Sunrise industry

Sunset industry


Supply curve and a range of elasticities

Supply elasticity

Supply in the Long-Run

Supply in the Short-Run

Supply of foreign exchange

Supply of Labour

Supply of labour curve-shifts

Supply Over Time

Supply schedule



Tax Avoidance

Tax Evasion

Tax take and the business cycle

Terms of Trade

Tertiary Sector

The basic economic problem

The Capital Account

The Current Account

The Financial Account

The foreign exchange market

The Labour Market

The process of transition

The real cost of a decision

Three basic questions

Trade and Inflation

Trade Cycle

Trade weighted index

Trade-Weighted Index

Traditional Economic System

Two Country Trade Model

Types of industrial action

Types of taxes

Types of Unemployment



Unemployment and migration

Unemployment benefits & unemployment

Unemployment economic effects

Unemployment rate

Unemployment social effects

Unfavourable movement in the Terms of Trade

Unitary Demand


Values conflict and compromises

Values influence decisions made

Values people hold

Velocity of circulation


Visibles (BOP)

Voluntary Unemployment



Wages-reward for human resources


Wealth effect and AD

What will be produced?

When is an allocation of goods pareto efficiency?

When is supply elasticity higher/lower

Where will a market clear

Who will get what is produced?

Why can individuals not have everything they want

Why investment might not take place

Why is demand limited and wants unlimited


Working-age population

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