Macroeconomics/Glossary

Aggregate Demand / Aggregate Expenditure - The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
Average Rate of Tax (ART) - An individual or company’s taxes divided by its taxable income.

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Balance of Payments - the difference between a nation's total payments to foreign countries, including movements of capital and gold, investments, tourist spending, etc., and its total receipts from foreign countries.

Central Bank - a bank, as the Federal Reserve Bank, that holds basic banking reserves, issues currency, and acts as lender of last resort and controller of credit.
Consumption - the using up of goods and services having an exchangeable value

Demand Curve - A mathematical curve, drawn on a graph, that represents what the demand for a commodity would be if its price ranged anywhere from zero to infinity.
Direct Taxation - Taxes which are imposed directly on the individual paying them.
Disposable Income - The amount of after-tax income that is available to divide between spending and personal savings.

Exchange Rate - The price of one country's currency expressed in another country's currency
Exports - To send or transport abroad, especially for trade or sale.

Government Spending -
Gross - The total amount before anything is deducted
Gross Domestic Product (GDP) - gross national product excluding payments on foreign investments
Gross National Product (GNP) - The total market value of all the goods and services produced by a nation during a specified period.

Gross Domestic Saving (GDP) - Total savings of an economy in a financial Year.

Imports - To bring or carry in from an outside source, especially to bring in goods or materials from a foreign country for trade or sale.
Income (Y) - The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments.
Inflation - a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency
Interest Rates -
Investment - the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.

Keynesian Economics - An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
Keynesian Theory of Consumption - current real disposable income is the most important determinant of consumption in the short run.

Marginal Propensity to Consume (MPC) - the increase in personal consumer spending that occurs with an increase in disposable income.
Marginal Propensity to Save (MPS) - the increase in saving that results from an increase in income.
Marginal Rate of Tax - The tax rate paid on the last dollar of one's income
Monetarist/Monetary Economist - a set of views concerning the determination of national income and monetary economics
Monetary Policy - The actions of a central bank, currency board, or other regulatory committee, that determine the size and rate of growth of the money supply, which in turn affects interest rates.
Money - A commodity or asset, such as gold, an officially issued currency, coin, or paper note, that can be legally exchanged for something equivalent, such as goods or services.

Nominal - Not adjusted for inflation. The par value of a bond.
Net - A net amount, as of profit or weight
National Income – the total value of all income in a nation (wages and profits and interest and rents and pension payments etc)

Opportunity Cost - The cost of not getting an item because you bought another (eg buying a chocolate bar - where you could have got some crisps)
Output -