8 A-level Economics Edexcel keywords

what are the 4 components of the current account

1.trade balance in goods

2.trade balance in services

3.net investment income from overseas investment

4.net money transfers

what is included in the trade balance in goods

finished manufactured goods, raw materials etc

energy products , capital technology

what is included in the trade balance in services

banking, insurance, consultancy, education

what is included in the net investment income

profits, interest and dividends from investment in other countries

profits from TNC’S (primary income)

what is included in net money transfers

overseas aid, debt relief

remittances (secondary income)

what is a current account deficit

less money is coming into a country than leaving

what is a current account surplus

more money is coming into a country than leaving

what are the 3 reasons for a larger UK trade deficit

export growth has weakened, higher global prices for essential imports, currency weakness

what are the consequences of a current account deficit

currency weakness, slower economic growth, need to attract capital flows

what are cyclical deficits

deficits caused by economic downturns

what is a structural deficit

deficits that are ongoing

3 causes of a current account surplus could be….

foreign direct investment, high domestic savings rates and export orientated growth

4 effects of a balance of payments deficit

economic growth, unemployment, inflation ,exchange rates

what is aggregate demand

the total value of planned expenditure on goods/services in an economy over a given period of time

what does the AD curve show

the relationship between the average price level and real GDP

what are the 3 reasons for the AD curve sloping downwards

interest rates, international competitiveness, the wealth effect

what causes a MOVEMENT along the AD curve

a change in the average price level with all other components unchanged

what are 4 factors that can cause a shift in the AD curve

interest rates,. wealth, taxation, exchange rate

who are the monetary policy committee (MPC)

a group of people who determine whether to rise or lower interest rates

what are some factors that impact consumption

real disposable income, savings ratio, confidence