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Accelerator Theory

AD- C + I

AD- G + (X-M)

AD/AS Model

Aggregate Supply


Basic Concepts-Resources (FOP) (demo)

Basic Concepts-Scarcity, choice and opportunity cost (demo)

Business Cycle


Circular Flow Model- Basic ideas

Circular Flow Model-Full Model


Demand-Basics Concepts



Economic Development

Economic Growth-Calculating GDP

Economic Growth-Causes/Costs & Benefits

Economic Growth-Different Measures

Economic Growth-Savings/Investment

Exchange Rates-Basics

Exchange Rates-Forex Market


Fiscal Policy


Gini coefficient


Inflation-Causes of

Inflation-General Price Level Changes


Inflation-Quantity Theory of Money (MV=PQ)

Inflation-Real Values

Inflation-The Consumer Price Index


Keynesian v Monetarist


Labour Market-Basics

Labour Market-Changes


Macroeconomics-Aims & Conflicts

Market Equilibrium-Basics

Market Equilibrium-Price/Output changes (Advanced)

Market Failure-Basics

Monetary Policy

Money-Credit Creation

Money-Liquidity Preference Theory



Price Controls-Minimum Price

Production Possibility Curve-Basics

Production Possibility Curve-Shifts/Uses


Supply-Basics Concepts


Supply-side policies



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


Unemployment-Causes of/Types

Unemployment-Impacts & Policies


Glossary of Terms

Each Glossary Term relates to a parent topic above.


Absolute advantage

Absolute equality of income & the Gini coefficient

Absolute inequality of income & the Gini coefficient

Accelerator Theory

Actual Employment

AD/AS Model

Aggregate Demand

Aggregate Supply

Allocative efficiency and a PPC

Anti-dumping laws (regulations)

Anti-inflationary policies & unemployment


Arguments for protectionism

Asset demand for money

Assumptions made about a PPC

Autonomous investment

Autonomous spending

Average propensity to consume (APC)

Average propensity to save (APS)

Average Tax Rate


Balance on Current Transfers

Balance on Goods

Balance on Income

Balance on Services

Base year

Best measure used to determine future output

Best measure used to determine quality of life

Bowed Production Possibility Curve

Broad money

Business Cycle


Calculating GDP

Calculating the Gini coefficient

Calculating the Terms of Trade

Calculations & a minimum price

Capital Resources

Capital stock/ Phyical capital-Supply-side policies

Causes of changes in the current account

Causes of changes in the exchange rate

Causes of unemployment


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


Classical Theory

Clean Float

Company tax rates-Supply-side policies

Comparative advantage

Comparing a value over a number of years

Comparing a value within a year


Components of the quantity theory of money

Concerns over a current account deficit

Conditions for Allocative Efficiency

Conditions required to achieve allocative efficiency

Constant Values


Consumer confidence and AD

Consumer Demand

Consumer Price Index (CPI)

Consumer Sovereignty

Consumption function

Consumption Spending (C)

Consumption spending-the two sector model

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

Costs of Production

Costs of production & the AS curve

Credit Creation Process

Current Values

Cyclical Unemployment


Decrease in quantity demanded

Decrease in quantity supplied



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



Derived demand

Deterioration in the current account

Determinants of Demand

Determinants of Supply

Development-Human Development Index (HDI)

Development-Multidimensional Poverty Index (MPI)

Dirty Float


Distinguishing between economic development & economic growth

Distinguishing between price & cost


Economic concepts illustrated by a PPC

Economic Goods

Economic Growth

Education-Supply-side policies

Effects of Growth

Embargo (trade barrier)

Employment argument for protectionism


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

Exclusions from GDP

Expansionary fiscal policy

Expenditure Method

Expenditure-dampening policies

Expenditure-switching policies

Export Price Index

Exports one country model

Exports two country model


Factors of Production

Factors that can influence the level of unemployment

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

Financial Intermediaries

Firms and Inflation

Firms Sector

Fiscal drag

Fiscal Policy-contractionary

Floor Price

Fluctuations in Economic Activity

Foreign Sector

Free Goods

Free Trade

Free trade-exports

Free trade-imports

Frictional Unemployment

Full employment and the natural rate of unemployment

Full multiplier

Funding a current account deficit



Government and the current account

Government Budget Deficit

Government Budget Surplus

Government Sector

Government Spending

Government Spending (G)

Growth-Costs & Benefits



Hard landing

Harrod Domar Model


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 Consumer Price Index

How to construct a demand schedule

How to derive market demand

How to derive market supply

How to illustrate a price change on a demand curve

How to illustrate a price change on a supply curve

Human Resources


Impact of deflation on various groups

Import licences or quotas (trade barrier)

Import Price Index

Importance of events for growth

Imports one country model

Imports two country model

Imposing a tariff

Improvement in the current account

Income Method

Increase in quantity demanded

Increase in quantity supplied

Increased savings & unemployment

Increased wage demands & unemployment

Indicators of Development

Individual demand

Individual Price Rise

Induced investment

Inequality and Economic Development

Inequality and taxes

Inequality and the Gini coefficient

Infant industry argument


Inflationary expectations and AD

Inflationary Gap

Influences on the Marginal Propensity to Consume (MPC)

Infrastructure-Supply-side policies


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


John Maynard Keynes


Keynesian and Monetarist doctrines

Kuznets curve


Labour force & the AS curve

Labour force participation rate

Lack of qualifications & unemployment

Law of Demand

Law of Supply


Lewis Growth Model

Limitations of data on economic growth

Limitations of the accelerator theory

Limitations of the Consumer Price Index

Limited Means

Link between greater savings or capital goods & living standards

Link between saving & investment

Lorenz model & the Gini coefficient




Macroeconomic Conflicts

Macroeconomic economic objective-Balance of Payments

Macroeconomic economic objective-Economic Growth

Macroeconomic economic objective-Equality

Macroeconomic economic objective-Full Employment

Macroeconomic economic objective-Price Stability


Marginal Propensity to Consume

Marginal Propensity to Import

Marginal Propensity to Save

Marginal Propensity to Tax

Marginal Tax Rate

Market Demand

Market failure

Market Supply

Measures of Unemployment

Minimum Price Control

Minimum Wage

Monetary Policy

Money flows-two sector model

Movements along a Demand Curve

Movements along a Supply Curve



Narrow money

Natural Resources

Negative (disadvantages) outcomes of economic growth

Net Exports (X-M)

Net Social Welfare

Nominal GDP

Nominal interest rates

Non-Renewable Resources


Obstacles to growth

Official Cash Rate (OCR)


Opportunity Cost


Peak (boom)

Perfect Information (Knowledge)

Perfect mobility of factors

Phillips Curve

Policies for assisting growth in Less Developed Countries

Policies for growth in Less Developed Countries-Debt Relief

Policies for growth in Less Developed Countries-Export Promotion

Policies for growth in Less Developed Countries-Fair Trade

Policies for growth in Less Developed Countries-Import Substitution

Policies for growth in Less Developed Countries-Overseas Aid

Policies on unemployment

Policies to promote free trade

Policy Target Agreement (PTA)

Positive (advantages) outcomes of economic growth

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 index

Primary Expansion of the Money Supply

Producer-the two sector model

Producers Price Index (PPI)

Production efficiency and a PPC

Production Method

Production Possibility Curve

Productive Capacity

Productivity/technology & the AS curve


Profit-reward for entrepreneurship

Progressive Tax


Prudential Ratio




Real flows-two sector model

Real GDP

Real Income

Real interest rates

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 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


Roles of Government

Rostow Model


Savings (S)

Savings and Inflation

Savings-the two sector model


Secondary Expansion of the Money Supply



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


Size of the basic multiplier

Soft landing

Sources of Government Revenue

Standard Keynesian consumption function

Sticky wages

Straight Line Production Possibility Curve

Strategic (essential industry) argument

Structural Unemployment



Supply of foreign exchange

Supply of Labour

Supply of labour curve-shifts

Supply schedule




Tax Avoidance

Tax Evasion

Tax take and the business cycle

Terms of Trade

The basic economic problem

The Capital Account

The Current Account

The Financial Account

The foreign exchange market

The Labour Market

The Marginal Efficiency of Capital (MEC)

The Multiplier Process

The real cost of a decision

Trade and Inflation

Trade Cycle

Trade reforms-Supply-side policies

Trade weighted index

Trade-Weighted Index

Transaction demand for money

Two Country Trade Model

Types of taxes

Types of Unemployment

Typical Problems of Less Developed Countries



Unemployment and migration

Unemployment benefits & unemployment

Unemployment economic effects

Unemployment rate

Unemployment social effects

Unfavourable movement in the Terms of Trade

Uses of the Consumer Price Index


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

Weighting an index

Where will a market clear

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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