Macroeconomic Indicators AS AQA Economics

  • Created by: Martina_
  • Created on: 24-02-14 15:45
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  • Balance of Payments Equilibrium
    • Macroeconomic Indicators
      • Low Unemploy -ment Levels
        • The claimant account measure of unemployment simply counts the number claiming unemployment
        • Unemployed are those of a working age who are actively seeking work but do not have a job
        • Labour force survey method is based on a monthly survey of 6000 households and uses the International Labour Organisation definition of unemployment
          • It covers those who have looked for work in the past 4 weeks and are available to start work in the next 2 weeks
      • Strong and Sustainable Growth
        • Main measure of national income is GDP
          • GDP- value of output produced within domestic boundaries of the UK over a period of time
        • Economic growth is measured as the change in national income over time
      • Low and Stable Inflation
        • Main measures of inflation are Retail Price Index and Consumer Price Index which is the preferred method
          • RPI measures avg change in prices of a representative sample of over 670 goods/services
          • CPI is calculated using essentially same price data as RPI, but doesn't include council tax/ other housing costs; covers a broader section of population
        • Inflation is a persistent increase in the general rise in prices over time
    • Measures flow of money between countries: Imports-outflow Exports-inflow
    • Current account primarily measures net trade in goods and services


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