OCR AS Economics: F582: Macro: The National and International Economy Part 2

Definition cards from Bamford textbook for the Macroeconomics paper (OCR F582), definitions taken from Chapter 5: Government economic policy objectives and indicators of national economic performance. Part 2 of 3 sets of revision cards covering the whole paper. 

HideShow resource information
  • Created by: Josie
  • Created on: 03-03-11 20:43

Economic Growth

1 of 33

Economic Growth

In the short run, an increase in real GDP, and in the long run, an increase in productive capacity, that is, in the maximum output that the economy can produce.

2 of 33

Unemployment

3 of 33

Unemployment

A situation where people are out of work but are willing and able to work

4 of 33

Labour Force

5 of 33

Labour Force

The people who are employed and unemployed that is, those who are economically active

6 of 33

Economically Inactive

7 of 33

Economically Inactive

People of working age who are neither employed nor unemployed

8 of 33

Deflation

9 of 33

Deflation

A sustained fall in the general price level

10 of 33

Balance of Payments

11 of 33

Balance of Payments

A record of money flows coming in and going out of a country

12 of 33

Elastic

13 of 33

Elastic

Responsive to change in market conditions

14 of 33

Inflation Rate

15 of 33

Inflation Rate

The percentage increase in the price level over a period of time

16 of 33

Sustainable Economic Growth

17 of 33

Sustainable Economic Growth

Economic growth that can continue over time and does not endanger future generations’ ability to expand productive capacity

18 of 33

Trend Growth

19 of 33

Trend Growth

The expected increase in potential output over time. It is a measure of how fast the economy can grow without generating inflation

20 of 33

Full Employment

21 of 33

Full Employment

A situation where those wanting and able to work can find employment at the going wage rate

22 of 33

Current Account Deficit

23 of 33

Current Account Deficit

When more money is leaving the country than entering it, as a result of sales of its exports, income and current transfers from abroad being less than imports and income and current transfers going abroad

24 of 33

Nominal GDP

25 of 33

Nominal GDP

Output measured in current prices and so not adjusted for inflation

26 of 33

Labour Productivity

27 of 33

Labour Productivity

Output per worker per hour

28 of 33

Informal Economy

29 of 33

Informal Economy

Economic activity that is not recorded or registered with the authorities in order to avoid paying tax or complying with regulations, or because the activity is illegal

30 of 33

Economy of Scale

31 of 33

Economy of Scale

The advantage of producing on large scale, in the form of lower long-run average cost

32 of 33

Unemployment Rate

The percentage of the labour force who are out of work

33 of 33

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all resources »