Sustained increase in general level of prices, measured in the UK by changes in the cost of basket of goods and services bought by a typical household (CPI), weighted according to the expenditure on each item in the basket
Inflation
1 of 21
A measure of total output, expenditure or income of an economy after adjusting for changes in the price level. The growth of real GDP is the percentage change in output during a particular time period, often measured over a year.
Real GDP growth
2 of 21
Arises when someone is out of work and actively seeking employment. Measured as the total number of people unemployed (the level of unemployment) or as a percentage of the workforce (the rate of unemployment).t
Unemployment
3 of 21
Records money flows into and out of a country over a period of time
Balance of payments
4 of 21
(in BoP): includes money flows due to trade (the trade balance- broken down to trade in goods and trade in services), transfers of interest, profit and dividends (the investment income balance) and transfers of money by governments and IO
Current Account
5 of 21
A measure of the material well-being of a nation and its people
Standard of living
6 of 21
The actual annual % increase in an economy's output, sometimes referred to as actual economic growth
Short-run economic growth
7 of 21
The difference between the actual and potential output of an economy. Where actual output is below potential output as - output gap. + output is in short run, actual output exceeds the economy's potential output
Output gap
8 of 21
Exists when firms in the economy are capable of producing more output than they are actually producing
Spare capacity
9 of 21
Average rate of economic growth measured over a period of time, normally over the course of the economic cycle. (peak to peak or trough to trough)
Trend rate of growth
10 of 21
Shows the level of production for the economy at a given price level, assuming labour costs and other factor input costs are unchanged
Short-run aggregate supply
11 of 21
Fluctuations in the level of economic activity as measured by GDP. Four stages
Economic cycle
12 of 21
The knowledge and skills of labour force
Human capital
13 of 21
MPS. Proportion of additional national income that is saved. change in saving over change in national income
Marginal propensity to save
14 of 21
MPT Proportion of additional national income that is taxed. Change in taxation over change in national income
Marginal propensity to tax
15 of 21
MPM, Proportion of additional national income that is spent on imports. Change in imports over change in national income.
Marginal propensity to import
16 of 21
The theory of investment that states that the level of investment depends on the rate of change of national income
Accelerator
17 of 21
Economists who believe that market failures will result in price and quantity rigidities such that the equilibrium output in the long run may be less than its potential output
Keynesian economists
18 of 21
All those people of working age who are in employment or actively seeking work
Labour force
19 of 21
A measure of the proportion of the population able to work who are in employment or who are actively seeking work
Labour force participation rate
20 of 21
The amount of the capital needed to generate each unit of output
Capital output ratio
21 of 21
Other cards in this set
Card 2
Front
A measure of total output, expenditure or income of an economy after adjusting for changes in the price level. The growth of real GDP is the percentage change in output during a particular time period, often measured over a year.
Back
Real GDP growth
Card 3
Front
Arises when someone is out of work and actively seeking employment. Measured as the total number of people unemployed (the level of unemployment) or as a percentage of the workforce (the rate of unemployment).t
Back
Card 4
Front
Records money flows into and out of a country over a period of time
Back
Card 5
Front
(in BoP): includes money flows due to trade (the trade balance- broken down to trade in goods and trade in services), transfers of interest, profit and dividends (the investment income balance) and transfers of money by governments and IO
Comments
No comments have yet been made