AQA AS Economics All Definitions. Latest 2022. 99% proven pass rate

1. Accelerator Effect - Ans-The relation between the change in new investment and the rate of change of national income. 2. Actual Supply - Ans-The amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absences, etc. 3. Aggregate Demand - Ans-Total planned expenditure in the economy. Known by the identity C + I + G + (X - M) 4. Aggregate Supply - Ans-The total value of goods and services supplied in the economy. 5. Allocative Efficiency - Ans-This is achieved in an economy when it is not possible to make anyone better off without making someone worth off, or you cannot produce more of one good without making less of another. 6. Balance of Payments - Ans-Exports minus imports - a deficit means more is imported than exported. 7. Balance of Trade - Ans-Visible exports minus visible imports. 8. Balanced Budget - Ans-Where government receipts equal government spending in a financial year. 9. Boom/bust Policy - Ans-The government using macroeconomic tools to stimulate and then contract the economy.