6. The total output of goods and services produced in a country over a given time period, irrespective of ownership
Real GDP
Gross Domestic Product
Gross National Product
7. Workers ask for pay rises to maintain their real purchasing power, leading to higher costs for firms, who may pass these costs on as higher product prices, creating even more inflation and an upwards spiral effect
Wage-price Spiral
Inflation
Fiscal Drag
8. Spending by firms on capital goods e.g. machinery to expand capacity
Investment
Government Spending
Consumption
9. A direct payment from the government to producers to lower costs and encourage production
Budget Deficit
Subsidy
Tariff
10. The distortion of price signals caused by inflation. Market prices do not signal the reletive scarcity of products efficiently, creating uncertainty for consumers and shoe-leather costs
Inflationary Noise
Fiscal Drag
Consumption
11. The value of imported goods and services equals the value of exported goods and services
Trade Balance
Trade Deficit
Trade Surplus
12. Exports minus imports of goods and services. A negative trade balance is a deficit, a positive trade balance is a surplus
Budget Balance
Balance of Trade
Balance of Payments
13. People out of work over the long-term due to the decline of certain industries and occupations, e.g. de-industrialisation, due to changes in supply and demand
Classical Unemployment
Structural Unemployment
Cyclical Unemployment
14. Unemployment generating further unemployment as those unemployed lose their skills and become less employable, making it more difficult for them to become employed
Human Capital
Hysteresis
Cyclical Unemployment
15. People's incomes being dragged into higher tax bands as a result of tax brackets not being adjusted in-line with inflation, causing real disposable incomes to fall
Inflationary Noise
Fiscal Drag
Menu Costs
16. Taxes levied on the consumption of goods and services e.g. VAT
Indirect Taxation
Direct Taxation
Regressive Taxation
17. Real disposable income minus spending
Saving
Spending
Economic Growth
18. When government spending is greater than tax revenue collected over a year
Budget Balance
Budget Deficit
Budget Surplus
19. Part of the balance of payments which consists of trade in goods, trade in services, investment income and net transfers
Current Account
Capital Account
Balance of Payments
20. A measure of unemployment that is the number of people receiving job seeker's allowance e.g.willing and able to work and actively seeking work every two weeks
