Real GNP GNP measured at constant/base year prices with the effects

of inflation removed
Nominal GNP GNP measured at current/prevailing market rates,
effects of inflation not removed
Real National Income per Capita quantity of goods and services
available for consumption on a per capita basis
Standard of living the level of social and economic well-being or
welfare enjoyed by an average person or resident of a country. Overall
standard of living measures material plus non-material well-being of
residents

Material/tangible SOL quantity and quality of goods and services

available to residents for consumption
Non-material SOL quality of life: working hours, stress levels,
pollution levels

Consumption the spending on consumer goods by the household

sector in an economy
Average propensity to consume (APC) the proportion of total
income that is spent on consumption and is calculated by dividing the
total consumption by the total income
Marginal propensity to consume (MPC) the change in consumption
as income changes and is measured by dividing the change in
consumption by the change in income
Investment the spending by businesses or firms on capital goods or
intermediate goods which are required for producing the output
Marginal efficiency of investment to measure the expected
profitability or rate of returns from an additional unit of investment on
capital goods
The Multiplier the number of times national income changes as a
result of a change in autonomous expenditure into the circular income
flow
Fiscal Policy the use of government spending and taxation to
influence the level of economic activity through the aggregate demand
Monetary Policy the deliberate attempt by the Central Bank to
regulate the money supply or manipulate the interest rate or exchange
rate to influence the level of economic activity so as to achieve economic
objectives (4 macro goals)
Supply-side Policies mainly micro-economic policies designed to
improve the supply-side potential of an economy, make markets and
industries operate more efficiently and thereby contribute to a faster rate
of growth of real national output

Balance of payments a summary statement of the money value of all

economic transactions between the residents of the country with the rest
of the world during a specified period of time, usually one year
Expenditure switching measures measures used by the government
aiming to switch the locals from consuming imports to buying local goods
and to switch foreigners from buying local products to their exports