Macro Economics Definitions .3

HideShow resource information
  • Created by: Soph
  • Created on: 12-04-16 19:24
Economic Performance
Success or failure in achieving economic policy objectives
1 of 23
Economic Recovery
When short-run economic growth takes place after a recession
2 of 23
Demand-side
This relates to the impact of changes in aggregate demand on the economy
3 of 23
Supply-side
This related to changes in the potential output of the economy which is affected by the available factors of production
4 of 23
Trend growth rate
This reflects the annual average percentage increase in the productive capacity of the economy
5 of 23
Seasonal fluctuation
This is a variation of economic activity resulting from seasonal changes in the economy
6 of 23
Economic cycle
This looks at upswing and downside in aggregate economic activity taking place over 4 to 12 years
7 of 23
Output gap
This is the level of actual real output in the economy which is greater or lower than the trend output level
8 of 23
Positive output gap
This is the level of actual real output in the economy which is greater than trend output level
9 of 23
Negative output gap
This is the level of actual real output in the economy which is lower than the trend output level
10 of 23
Geographical immobility of labour
This is when workers are unwilling or unable to move from one area to another in search of work
11 of 23
Occupational immobility of labour
This is when workers are unwilling or unable to move from one type of job to another due to different skills needed
12 of 23
Frictional unemployment
This is unemployment that is short term and occurs when workers switch between jobs
13 of 23
Structural unemployment
This is long term unemployment caused by people lacking the skills required for a new job in a different industry
14 of 23
Cyclical/ Demand deficient unemployment
This is unemployment caused by a lack of aggregate demand
15 of 23
Seasonal unemployment
This occurs when unemployment rises due to factors such as weather
16 of 23
Real-wage unemployment
This is unemployment caused by real wages being above the equilibrium wage. As a result, firms do not employ workers
17 of 23
Voluntary unemployment
This is when workers choose to remain unemployed and refuse job offers at current wage rates
18 of 23
Demand pull inflation
This is inflation caused by a rise in price level caused by an increase in aggregate demand thus shifting the curve to the right
19 of 23
Cost-push inflation
This is a rise in price level caused by an increase in the costs of production which is shown by a shift in the SRAS cure to the left
20 of 23
Current account deficit
This occurs when currency outflows exceed currency inflows. Exports are less than imports
21 of 23
Current account surplus
This occurs when exports are greater than imports
22 of 23
Philips curve (SRAS)
This is based on evidence which shows that when inflation is at its highest, unemployment is at its lowest
23 of 23

Other cards in this set

Card 2

Front

When short-run economic growth takes place after a recession

Back

Economic Recovery

Card 3

Front

This relates to the impact of changes in aggregate demand on the economy

Back

Preview of the back of card 3

Card 4

Front

This related to changes in the potential output of the economy which is affected by the available factors of production

Back

Preview of the back of card 4

Card 5

Front

This reflects the annual average percentage increase in the productive capacity of the economy

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economic Performance resources »