Economics F582

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Economic growth
In the short run, an increase in real GDP, in the long run, an increase in productive capacity, that is, in the maximum output that an economy can produce
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Unemployment
A situation where people are out of work but are willing and able to work
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Labour force
The people that are employed and unemployed, that is, those who are economically active
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Deflation
A sustained fall in the price level
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Balance of payments
A record of money flows coming in and out of a country
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Inflation rate
The percentage increase in the price level over a period of time
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Sustainable economic growth
Economic growth that can continue over time and does not endanger future generations ability to expand productive capacity
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Trend growth
The expected increase in potential output over time. It is a measure of how fast the economy can grow without generating inflation
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Full employment
A situation where those wanting and able to work can find employment at the going wage rate
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Current account deficit
When more money is leaving the country than entering it, as a result of sales and its exports, income and current transfers abroad being less than imports and current transfers going abroad
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Hyperinflation
An inflation rate above 50 per cent
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Nominal GDP
Output that is measured in current prices and so not adjusted for inflation
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Labour productivity
Output per worker hour
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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
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Economy of scale
The advantage of producing on large scale, in the form of lower long-rin average cost
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Unemployment rate
The percentage of the labour force who are out of work
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Labour force survey
A measure of unemployment based on a survey using the ILO definition of unemployment
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International Labour organisation (ILO)
Member organisation of the United nations that collect statistics on labour market conditions and seeks to improve working conditions
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Claimant count
A measure of unemployment that includes those who are receiving unemployment related benefits
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Consumer prices Index
A measure of changes in price of a representative basket of consumer goods and services. Differs from the retail price index in methodology and coverage
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Retail price index
Measure of inflation that is used for adjusting pensions and other benefits to take account of changes in inflation and frequently used in wage negotiations. Differs from the consumer price index in methodology and coverage
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Cyclical unemployment
Unemployment arising from a lack of aggregate demand
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Structural unemployment
Unemployment that is caused by the decline of certain industries and occupations due to the changes in demand and supply
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Frictional unemployment
Short term unemployment occurring when workers are in between jobs
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Demand-pull inflation
Increases in the price level caused by increases in aggregate demand
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Cost-push inflation
Increases in the price level caused by increases in the costs of production
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Hysteresis
Unemployment causing unemployment
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menu costs
The costs of changing prices due to inflation
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Shoe-leather costs
Costs in terms of the extra time and effort involved in reducing money holdings
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Inflationary noise
The distortion of price signals caused by inflation
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Real interest rate
The nominal interest minus the inflation rate
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Fiscal drag
Peoples income being dragged into higher tax bands as a result of the tax brackets not being adjusted in line with inflation
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Monetary Policy Committee
A committee of the Bank of England with the responsibility for settling the interest rate in order to meet the governments inflation target
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Other cards in this set

Card 2

Front

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

Back

Unemployment

Card 3

Front

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

Back

Preview of the back of card 3

Card 4

Front

A sustained fall in the price level

Back

Preview of the back of card 4

Card 5

Front

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

Back

Preview of the back of card 5
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