Economics notes 52-76 0.0 / 5 ? EconomicsEconomic PerformanceASOCR Created by: dannysouthern2013Created on: 17-11-13 16:34 macro economics study of behaviour of an economy as a whole 1 of 25 micro economics study of behaviour of parts of the economy 2 of 25 unemployment The numbre of people of working age who are seeking work yet do not have a paid job 3 of 25 economic activity rate Those either looking for work or in work as a proportion of the population off working age 4 of 25 economically inactive Those of working age who have chosen not to do paid work or look for paid work 5 of 25 gross domestic product The value of output produced by domestic based resources per year 6 of 25 economic growth Rate of increase in national output per year 7 of 25 real growth Growth of gdp after inflation has been accounted for(at constant prices)(key measure of national economic performance) 8 of 25 nominal growth growth of gdp before inflation has been accounted for (at current prices) 9 of 25 sustainable development development which meets the needs of present generations without reducing the ability of future generations to meet their needs 10 of 25 inflation the rate of change in the average price level 11 of 25 retail price index weighted average of the retail price level at a point in time(expressed as an index number) 12 of 25 consumer price index an index number measuring a weighted average for the price of consumer goods and services at a point in time 13 of 25 underlying inflation RPI excluding mortgage interest payments 14 of 25 balance of payments a record of transactions between residents of one country and those living abroad in a year 15 of 25 balance of payments current account the net inflow of money to a country arising from international trade in goods and services, investment income and transfers 16 of 25 investment income earnings from the ownership of assets(interest, profit and dividends) 17 of 25 circular flow of income model which explains what determines the equilibrium level of national income(spending and income flows between domestic households and firms) 18 of 25 injection spending on domesticc output which comes from outside the simple circular flow of income i.e. investment, government and exports 19 of 25 withdrawal(W) income which is not spenton domestic output(consumption) i.e savings, taxation and imports 20 of 25 multiplier effect the knock-on effects of an initial change in injections or withdrawals which cause national income to change by more than the initial change 21 of 25 aggregate demand(AD) the sum of all planned spending on domestic output at a given general price level per period 22 of 25 aggregate supply(AS) the sum of all planned domestic production at a given general price level per period 23 of 25 consumption spending by domestic housegolds on consumer goods and services 24 of 25 investment spending by domestic firms on capital goods(investment spending yields returns in the future) 25 of 25
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