6 A-level Economics Edexcel keywords

what does PES 1 to infinity represent

relatively elastic supply

what does PES 1 to infinity mean

% change in QS will be greater than the % change in P

what does PES infinity represent

perfectly elastic supply

what does PES infinity mean

QS falls to 0 if the price rises

what is momentary supply

percentage change in quantity supplied divided by the percentage change in price

what is GDP

total value of goods/services produced in an economy over a given period of time

what is economic growth

how much the value of output produced in an economy has grown

what does GDP measure

the total value of national output of goods and services

what does GDP count

the value of output produced withing the geographical boundaries of a country

what’s the formula for measuring GDP

National income = National expenditure = National output

what are the 3 methods of calculating output

GDP (expenditure), GDP (factor incomes), GDP (value of output)

what if the GDP (national expenditure) formula

C+I+G+(X-M)

what do each of the GDP (expenditure) component represent

consumption, government spending, investment spending (changes in value of stocks), exports and imports

what is aggregate demand also known as

GDP

what is national income

GDP is the sum of the final incomes earned through production of goods and services

what does GDP (factor incomes) include

incomes from : wages and salaries, profits of private and public sector firms, rental income

what does GDP (value of output) include

value added from each of main sectors: primary, construction, manufacturing, tertiary and quaternary

what is excluded from GDP

transfer payments such as welfare benefits

what is national expenditure

sum of the FINAL expenditure on UK produced goods and services

what is national output

the value of output produced by each of the productive sectors in the economy using value added