It implies what goods are to be produced and what not and in which quantities these goods are to be produced.

Anticipated deflation is when nominal rates fall.

Aggregate Supply (AS) measures the volume of goods and services produced within the economy at a given overall price level. There is a positive relationship between aggregate supply and the general price level.

In economics, a luxury good is a good for which demand increases more than proportionally as income rises and is a contrast to a necessity good for which demand is not related to income.

A budget is a list of all planned expenses which uses a budget line to illustrate the trading.

In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, lower the unemployment in an economy, the higher the rate of inflation. While it has been observed that there is a stable short run trade off between unemployment and inflation, this has not been observed in the long run.

According to the compensation principle, if the prospective gainers could compensate any prospective losers and leave no one worse off, the other state is to be selected . An example of a compensation principle is the Pareto criterion in which a change in states entails that such compensation is not merely feasible but required.

Scarcity occurs when people want more of something than it is already available. In economics, scarcity forces people to make choices, as everyone cannot have everything. Without scarcity, an economy cannot exist.

It is a body of people that sets and administers public policy and exercises executive, political and sovereign power through customs, institutions and laws within a state.

Aggregate planned expenditure for goods and services in an economy is = C + I + G + (X-M).

It describes income distribution.

The marginal cost of an additional unit of the output is the cost of the additional inputs needed to produce that output.

Shares having a claim to participate in the whole range of annual profits remaining to a company after it has satisfied all charges and met any fixed preferential dividends, and having a right to participate in surplus assets in a winding up.

A loan taken from a bank has to be repaid with interest on or before a fixed date.  

Macroeconomics examines economy wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product and price levels.

The government should concentrate on reducing unemployment.

It is what will we gain in future to the present decision.

Inflation means a period of rapid rise in prices.

A period during which the aggregate output declines.

With inferior goods less is bought when income increases.

The sacrifice involved when you choose a particular course of action is called the opportunity cost.

Firms and households collectively circulate the flow of goods and services.

Income and wealth are linked together.

Aggregate economic analysis is concerned with the issues related to macroeconomic issues, such as, gross domestic product, national income, inflation, etc.

Graphical representation of the alternative combinations of the amounts of two goods or services that an economy can produce by transferring resources from one good or service to the other. This curve helps in determining what quantity of a non essential good or a service an economy can afford to produce without jeopardizing the required production of an essential good or service.