Influences on the Net Trade Balance The net trade balance is the difference between the value of the exports and imports (X-M) The net trade balance is influenced by changes to real income, exchang...
Influences on Government Expenditure Government expenditure is influenced by the trade/business cycle and spending linked to achieving policy aims Government expenditure can happen on a local level...
Gross & Net Investment Investment is the total spending on capital goods by firms Investment helps to increase the capacity (production possibilities) of an economy Increased capacity = increas...
The Influence of Disposable Income On Consumption Disposable income is the money that households have left from their salary/wages after they have paid their taxes and have received any tran...
The Components of AD Aggregate demand (AD) is the total demand for all goods/services in an economy at any given average price level Its value is often calculated using the expenditure approach AD ...
Components of the Balance of Payments The Balance of Payments (BoP) for a country is a record of all the financial transactions that occur between it and the rest of the world The BoP has two main ...
Measures of Unemployment Someone is considered to be unemployed if they are not working but actively seeking work They are part of the labour force A country's population is divided into the...
Inflation, Deflation & Disinflation Inflation is the sustained increase in the average price level of goods/services in an economy The average price level is measured by checking the pri...
Economic Growth Gross Domestic Product (GDP) National income accounting measures the economic activity within a country and provides insights into how a country is performing One of the main...
