Economics 14

HideShow resource information
  • Created by: Gabrielle
  • Created on: 30-12-13 12:42
View mindmap
  • The Macroeconomic Environment
    • Measurement of GDP
      • The market value of all final goods and services produced within a country in a given period of time
      • Consumption (household spending)
      • Investment in Capital equipment
      • Government purchases
      • Net Exports (exports - imports)
      • Nominal GDP
        • the production of goods and services valued at current prices
      • Real GDP
        • the production of goods and services valued at constant prices
    • Consumer Price Index (cost of living)
      • A measure of the overall prices of the goods and services bought by a typical consumer
      • Problems
        • Substitution bias
        • New Goods
        • Quality change
        • People are not typical consumers
    • Real & Nominal IR
      • Nominal: The interest rate that the bank pays
      • Real: The interest rate corrected for inflation
      • Real interest rate = Nominal interest rate – Inflation rate
    • Productivity is a key determinant of living standards and growth
    • Unemployment
      • the number of people of working age who are able and available for work at current wage rates and who do not have a job.
      • Measured by:
        • Claimant Count
        • Labour Force Survey
    • Trade balance = value of a nation’s exports minus the value of imports
    • Y = C + I + G + NX
    • Purchasing power parity where a unit of any given currency should be able to buy the same quantity of goods in all countries


No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Macroeconomic environment resources »