Economics A-Level
Capital goods
What Capital goods means in Economics A-Level, as defined for AQA.
Definition of Capital goods
Check what you remember
Read the wording for your board, then hide it and explain Capital goods in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The machinery or factories on which firms spend to increase future productive capacity.
Topics that use Capital goods
- The determinants of aggregate demand (AQA A-Level)
Related terms
- Aggregate demand
- Circular flow of income
- Exchange rates
- Interest rates
- Investment
- Macroeconomic objectives
- Net exports
- Price level
Using Capital goods in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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