unit 2 definitions

Question 1

economic activity

Answer 1

the process of making and selling goods and services in order to earn money

Question 2

non-economic activity

Answer 2

are generally not sold for money but activities that are done for emotional reasons, concern for others, or on a volunteer basis.
eg helping a friend with their hw

Question 3

inflation

Answer 3

a rise in the general level of prices

Question 4

MLS

Answer 4

are the level of tangible/material/physical goods
and services available to a person/group to consume.

Question 5

aggregate demand

Answer 5

total expenditure on new final Australian made goods and services

Question 5

NMLS

Answer 5

are intangible factors that affect the quality of people’s lives. A measure of general wellbeing and happiness

Question 6

GDP

Answer 6

gross domestic product is the total production of goods and services

Question 7

the circular flow model of income

Answer 7

illustrates how resources flow among the various sectors of the economy

Question 8

leakages

Answer 8

amounts that are part of Household income that are diverted away from Consumption

Question 9

injections

Answer 9

funds flowing back into the economy that increase
the level of Aggregate Demand

Question 10

aggregate demand =

Answer 10

C+I+G+X-M

Question 11

businesss cycle

Answer 11

refers to the wave-like, cyclical movements of aggregate demand and economic activity

Question 12

lagging indicators

Answer 12

Lagging indicators describe the level of economic activity that occurred in the past

Question 13

coincident indicators

Answer 13

economic metrics that change simultaneously with
the overall economy

Question 14

leading indicators

Answer 14

are economics data or statistics that help to forecast future economic activity

Question 15

exchange rate

Answer 15

measures the price/value of the Australian dollar.