AQA Economics A Level - Key Term Glossary: Macro

What is the balance of payments?

• A record of all economic transactions between the residents of a country and the rest of the world.

• A measure of a country's economic output.

• A system for managing a country's currency.

• A method for calculating inflation rates.

What does the current account measure?

• The balance of trade, net income from abroad, and net current transfers.

• The total amount of goods and services produced in a country.

• The level of inflation in an economy.

• The total amount of foreign direct investment.

What are economic cycles?

• Expansion and contraction phases in the economy

• A type of bicycle used for economic purposes

• A financial term for stock market trends

• A method of calculating GDP

What is economic development?

• The process of improving economic well-being and quality of life.

• The decline in economic growth and quality of life.

• The stagnation of economic activities.

• The reduction of economic disparities.

What is economic growth?

• Increase in the production of goods and services

• Decrease in the unemployment rate

• Increase in the population

• Improvement in technology

What are economic shocks?

• Sudden and unexpected events that affect an economy

• Gradual changes in economic policy

• Predictable economic trends

• Long-term economic planning

What is economic stability?

• A state in which the economy of a country experiences constant growth and low inflation.

• A situation where the economy is in a recession.

• A condition where the economy is experiencing hyperinflation.

• A scenario where the economy is stagnant.

What is price stability?

• The situation in which prices in an economy don't change much over time.

• A situation where prices are constantly increasing.

• A situation where prices are constantly decreasing.

• A situation where prices are unpredictable.

What is a trade-off?

• A situation where you give up one thing in order to get something else

• A situation where you gain everything without losing anything

• A situation where no choices are involved

• A situation where you only lose without gaining anything

What is the unemployment rate?

• 5%

• 10%

• 15%

• 20%