Pearson Edexcel (A -LEVEL) Was written
2021-2022 And was updated on Jan 20 2022
Course code WAC11/01
, Value and volume of national income - ANS✔✔--The value of national income is its
monetary value at the prices of the day; the volume is the national income adjusted for
inflation and is expressed either as an index number or in money terms at the prices in
a selected base year.
Actual growth - ANS✔✔--Economic growth as measured by recorded changes in real
GDP over time.
Macroeconomics - ANS✔✔--The study of the economy as a whole, including inflation,
growth and unemployment.
Animal spirits - ANS✔✔--Business confidence: the mood of managers and owners of
firms about the future of their industry and the wider economy.
Gross investment - ANS✔✔--The addition to capital stock, both to replace the
existing capital stock which has been used up (depreciation) and the creation of
additional capital.
Investment - ANS✔✔--The addition to the capital stock of the economy.
Retained profit - ANS✔✔--Profit kept back by a firm for its own use which is not
distributed to shareholders or used to pay taxation.
Net exports or the net trade balance - ANS✔✔--Exports minus imports.
Aggregate supply curve - ANS✔✔--The relationship between the average level of
prices in the economy and the level of total output.
Full capacity - ANS✔✔--The level of output where no extra production can take place
in the long run with existing resources. The full capacity level of output for an economy
is shown by the classical long run aggregate supply curve or the vertical part of a
Keynesian aggregate supply curve.
Short-run aggregate supply curve - ANS✔✔--The upward sloping aggregate supply
curve which assumes that money wage rates are fixed.
Supply-side shocks - ANS✔✔--Factors such as changes in wage rates or commodity
prices which cause the short run aggregate supply curve to shift.
2021-2022 And was updated on Jan 20 2022
Course code WAC11/01
, Value and volume of national income - ANS✔✔--The value of national income is its
monetary value at the prices of the day; the volume is the national income adjusted for
inflation and is expressed either as an index number or in money terms at the prices in
a selected base year.
Actual growth - ANS✔✔--Economic growth as measured by recorded changes in real
GDP over time.
Macroeconomics - ANS✔✔--The study of the economy as a whole, including inflation,
growth and unemployment.
Animal spirits - ANS✔✔--Business confidence: the mood of managers and owners of
firms about the future of their industry and the wider economy.
Gross investment - ANS✔✔--The addition to capital stock, both to replace the
existing capital stock which has been used up (depreciation) and the creation of
additional capital.
Investment - ANS✔✔--The addition to the capital stock of the economy.
Retained profit - ANS✔✔--Profit kept back by a firm for its own use which is not
distributed to shareholders or used to pay taxation.
Net exports or the net trade balance - ANS✔✔--Exports minus imports.
Aggregate supply curve - ANS✔✔--The relationship between the average level of
prices in the economy and the level of total output.
Full capacity - ANS✔✔--The level of output where no extra production can take place
in the long run with existing resources. The full capacity level of output for an economy
is shown by the classical long run aggregate supply curve or the vertical part of a
Keynesian aggregate supply curve.
Short-run aggregate supply curve - ANS✔✔--The upward sloping aggregate supply
curve which assumes that money wage rates are fixed.
Supply-side shocks - ANS✔✔--Factors such as changes in wage rates or commodity
prices which cause the short run aggregate supply curve to shift.
