IB Economics/Macroeconomics

• 3.1 Measuring National Income
• 3.2 Introduction to Development
• 3.3 Macroeconomic Models
• 3.4 Demand-side and Supply-side policies
• 3.5 Unemployment and Inflation
• 3.6 Distribution of Income

Key Terms

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Accelerator (HL)

Aggregate demand

Aggregate supply

Bonds

Business cycle (trade cycle)

Circular flow of income

Consumption

Cost-push inflation

Crowding out (HL)

Deflation

Deflationary gap

Demand deficient/cyclical unemployment

Demand-pull inflation

Demand-side policy

Depression

Direct taxation

Economic growth

Economic development

Expectations

Factor markets

Fiscal policy

Frictional unemployment

Full employment

Gini coefficient (HL)

Gross Domestic Product (GDP)

Gross National Product (GNP)

Human Development Index (HDI)

Indirect taxation

Inflation

Inflationary gap

Investment

Laffer curve (HL)

Long run aggregate supply (LRAS)

Lorenz curve (HL)

Monetary policy

Multiplier (HL)

Natural rate of unemployment

Net National Product (NNP)

Nominal GDP

Open market operations

Per capita GDP

Phillips curve (HL)

Product markets

Progressive taxation

Proportional taxation

Quantity theory of money

Real GDP

Real wage unemployment

Recession

Regressive taxation

Seasonal unemployment

Short run aggregate supply (SRAS)

Stagflation

Structural unemployment

Supply-side policy

Transfer payments

Underemployment

Unemployment rate

Unemployment