AQA -AS Macro Economics COMPREHENSIVE QUESTIONS AND
AQA -AS Macro Economics
VERIFIED ANSWERS (DETAILED & ELABORATED) ACTUAL EXAM
Study online at https://quizlet.com/_he2wif
2025
1. Inflation The rate of increase in the general price level over a given period of time. In the
UK the target is 2% CPI.
2. Economic Growth This occurs when, over time, an economy expands its capacity to produce goods
and services. In the UK trend rate of growth is 2.5% in GDP every year.
3. Gross Domestic The value of al goods and services produced within an economy over a given period
Product (GDP) of time
4. Recession A decline in the level of economic activity (as measured by a fall in GDP) that occurs
over a six month period or longer
5. Real GDP GDP data adjusted to remove the effects of inflation
6. Unemployment The percentage of the labour force, willing and able to work, seeking work but
Rate unable to get a job.
7. Balance of Pay- This records transactions between UK residents and the rest of the world
ments
8. Current Account This records transactions in good and services between UK residents and the rest
of the Balance of of the world
Payments
9. Distribution of in- This measures how a nations total income is spread between that country's inhab-
come itants
10. Economic Inactiv- This refers to people who are not in employment and who are not actively looking
ity for work, eg stay at home parents
11. Real GDP per The average income per person in a country after allowing for the effects of
capita inflation
12. Nominal GDP
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, AQA -AS Macro Economics
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This measures the value of all goods and services that are produced in an economy
over a given period of time, using their price at the time of production.
13. Index number A means of measuring changes in data over time by relating changes to a base
year that is given the value of 100
14. National income The monetary value of the total output of an economy over a specific period of time
15. Circular flow of A model that shows how money flows within a simplified economy, with house-
income holds and firms as key components
16. Withdrawals Factors that lead to income not being passed on within the circular flow - these
(leakages) comprise savings, taxation and imports
17. Injections Additions to the circular flow of income from outside it - these comprise investment,
government spending and exports
18. Aggregate De- The total planned demand for an economy's goods and services at a given price
mand level over a specific time period
19. Investment Planned spending by firms that adds to an economy's capital stock (property,
machinery, vehicles and other items used in production)
20. Government Expenditure by central and local governments on goods and services
spending
21. Net exports Spending by foreigners on exported goods and services minus expenditure by
households, firms and government on imported products
22. Consumption Planned spending by households on goods and services. Consumption makes up
over 60% of aggregate demand
23. Saving Income that is received but which is not spent and is not a component of aggregate
demand
2/7
AQA -AS Macro Economics
VERIFIED ANSWERS (DETAILED & ELABORATED) ACTUAL EXAM
Study online at https://quizlet.com/_he2wif
2025
1. Inflation The rate of increase in the general price level over a given period of time. In the
UK the target is 2% CPI.
2. Economic Growth This occurs when, over time, an economy expands its capacity to produce goods
and services. In the UK trend rate of growth is 2.5% in GDP every year.
3. Gross Domestic The value of al goods and services produced within an economy over a given period
Product (GDP) of time
4. Recession A decline in the level of economic activity (as measured by a fall in GDP) that occurs
over a six month period or longer
5. Real GDP GDP data adjusted to remove the effects of inflation
6. Unemployment The percentage of the labour force, willing and able to work, seeking work but
Rate unable to get a job.
7. Balance of Pay- This records transactions between UK residents and the rest of the world
ments
8. Current Account This records transactions in good and services between UK residents and the rest
of the Balance of of the world
Payments
9. Distribution of in- This measures how a nations total income is spread between that country's inhab-
come itants
10. Economic Inactiv- This refers to people who are not in employment and who are not actively looking
ity for work, eg stay at home parents
11. Real GDP per The average income per person in a country after allowing for the effects of
capita inflation
12. Nominal GDP
1/7
, AQA -AS Macro Economics
Study online at https://quizlet.com/_he2wif
This measures the value of all goods and services that are produced in an economy
over a given period of time, using their price at the time of production.
13. Index number A means of measuring changes in data over time by relating changes to a base
year that is given the value of 100
14. National income The monetary value of the total output of an economy over a specific period of time
15. Circular flow of A model that shows how money flows within a simplified economy, with house-
income holds and firms as key components
16. Withdrawals Factors that lead to income not being passed on within the circular flow - these
(leakages) comprise savings, taxation and imports
17. Injections Additions to the circular flow of income from outside it - these comprise investment,
government spending and exports
18. Aggregate De- The total planned demand for an economy's goods and services at a given price
mand level over a specific time period
19. Investment Planned spending by firms that adds to an economy's capital stock (property,
machinery, vehicles and other items used in production)
20. Government Expenditure by central and local governments on goods and services
spending
21. Net exports Spending by foreigners on exported goods and services minus expenditure by
households, firms and government on imported products
22. Consumption Planned spending by households on goods and services. Consumption makes up
over 60% of aggregate demand
23. Saving Income that is received but which is not spent and is not a component of aggregate
demand
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