Economic Terms : Definitions Flash Cards

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AGGREGATE DEMAND
total spending on goods and services in an economy; components are Consumption (C) + Investment (I) + Government Spending (G) + [ Exports (X) - Imports (M) ]
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BALANCE OF PAYMENTS
record of a country's transactions with the rest of the world. Current account of the balance of payments - a record of a country's trade of exports, imports, investment income and current transfers with the rest of the world
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BUSINESS CYCLE
the tendency of economic activity to rise above and below the trend rate of economic growth.
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INFLATION
Causes, costs and cures (CPI)
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CONSUMER PRICE INDEX
the measure of the average level of prices. Increases in the CPI are known as inflation, and this is used as a target for monetary policy since 2003.
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ECONOMIC GROWTH
a measure of the increase in either real GDP or potential GDP.
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HUMAN DEVELOPMENT INDEX
a measure of economic development or quality of lie, composed of three equally weighted index numbers, comprising health, education and GDP per head (adjusted for exchange rate differences and inflation).
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GINI COEFFICIENT & LORENZ CURVES
measurement of income distribution and inequality.
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PHILIPS CURVE
an empirical observation that there is a possible trade off between inflation and unemployment - that is that less of one means more of the other.
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UNEMPLOYMENT
unemployment rate - the percentage of the workforce that is able and wiling to work, that is not currently employed.
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Other cards in this set

Card 2

Front

record of a country's transactions with the rest of the world. Current account of the balance of payments - a record of a country's trade of exports, imports, investment income and current transfers with the rest of the world

Back

BALANCE OF PAYMENTS

Card 3

Front

the tendency of economic activity to rise above and below the trend rate of economic growth.

Back

Preview of the back of card 3

Card 4

Front

Causes, costs and cures (CPI)

Back

Preview of the back of card 4

Card 5

Front

the measure of the average level of prices. Increases in the CPI are known as inflation, and this is used as a target for monetary policy since 2003.

Back

Preview of the back of card 5
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