negative economic growth over two successive quarters
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Economic growth
An increase in the real output of the economy
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Long term economic growth rate
the average rate of economic growth sustained over a period of time
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Real GDP per capita
the total output of the economy in a year, divided by the size of the population, adjusted for infaltion
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Actual growth
An increase in the productive potential of the economy matched by an increase in demand
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Potential growth
An increase in the productive potential of the economy, not necessarily matched by demand
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trend rate of economic growth
the long-run average increase in GDPa
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Economic cycle
the cyclical pattern of short term fluctuations in GDP from year to year, in pattern of recovery, boom, downturn, recession
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Supply side policies
a range of measures designed to increase aggreate supply
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long term economic growth is generated through an increase
in the quantity/quality of the factors of production (land, labour, enterprise and capital)
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Activity rate
the proportion of the population of working age in a job or actively seeking work
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occupational immobility
the difficulties faced by workers wishing to shane occupations due to not having the required skills or qualifications
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Labour productivity
Output per worker per hour
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GDP incompletely measures output because...
it only measures the value of g&s that are produced and recorded as having been traded in markets, thus excluding the non-monetised sector of the economy
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non-monetised sector
valuable economic activity where no money changes hands, these services still add to the national output of the economy.
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GDP also omits
the informal economy, or 'black market' that accounts for 10-15% of the UK's output
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GDP doesn't take into account
quality improvements (understate welfare gain), value of leisure
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Human Development index
a measure of economic welfare based on the average of three indicators, standard of living, life expectancy and educational attainment
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Human poverty index
a measure of economic welfare based on four basic dimensions of human life: longevity, knowledge, economic provisioning and social inclusion
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Misery index
a measure of economic welfare constructed by adding the unemployment rate ti the inflation rate (higher = higher level of economic and scoial costs)
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sustainability (of economic growth)
economic growth that does not impose costs on future generations
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Accelerator Theory
theory that the level of investment is related to past changed in national income
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Multiplier effect
a change in one of the components of AD leads to a greater overall change in national income
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Other cards in this set
Card 2
Front
An increase in the real output of the economy
Back
Economic growth
Card 3
Front
the average rate of economic growth sustained over a period of time
Back
Card 4
Front
the total output of the economy in a year, divided by the size of the population, adjusted for infaltion
Back
Card 5
Front
An increase in the productive potential of the economy matched by an increase in demand
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