Economic Activity - AOS 1 UNIT 2

Economic Growth

Economic growth refers to the increase in the production and consumption of goods and services in an economy over a period of time.

Economic Development

A Term referring to improvements in the economic well-being of a nation, including material and non-material factors such as growth in incomes and wealth

Real GDP

GDP divided by rate of inflation

Real GDP Per Capita

GDP divided by the size of the population

Consumption Expenditure

Part of AD and defined as the total value of all expenditures

Private Investment Expenditure

Government Expenditure

Expenditure by all areas of government and commonly broken up into G1 and G2

Net Exports

Recession

Disinflation

Deflation

Material Living Standards

Non Material Living Standards

Leading Indicator

Lagging Indicator

Coincident indicator

Productivity

Consumer Confidence

Business Confidence

Terms of Trade

Aggregate Demand

Aggregate Supply

Income Inequality

Disposable Income

Inflation