The measurement of macroeconomic performance

HideShow resource information
Aggregate demand
Total demand in the economy made up of consumption, investment, government expenditure and net exports. Known by the identity C + I + G + (X-M)
1 of 19
Aggregate supply
the total value of goods and services supplied in the economy.
2 of 19
Economic growth
the capacity of the economy to produce more goods and services over time. (plus diagram)
3 of 19
Gross domestic product (GDP)
the total value of goods and services produced in the economy
4 of 19
Negative output gap
where the economy is producing less than its trend output
5 of 19
Positive output gap
When actual GDP exceeds trend GDP increasing inflationary pressure.
6 of 19
Trade-off
where one macro-economic objective has to be curtailed in favour of another objective
7 of 19
Imports
goods or services purchased from abroad e.g. manufactured goods, fuel
8 of 19
exports
g/s sold abroad e.g. IT services, financial etc
9 of 19
Employment
where labour is actively engaged in a productive activity usually in exchange for payments such as wages
10 of 19
Unemployment
those without a job but who are seeking work at current wage rates and are able to start in 2 weeks. The current rate is 7.1%
11 of 19
Exporting
the sale of g/s to a foreign country - generating income for the home country
12 of 19
Importing
the purchase of g/s from abroad - leads to expenditure for the home country
13 of 19
Economic indicators
economic statistics that provide information about the expansions and contractions of business cycles
14 of 19
Nominal GDP/ national income/ output
GDP/ income/ output figures not adjusted for inflation
15 of 19
Real GDP/ national income/ output
these are figures adjusted for inflation
16 of 19
GDP per capita
GDP divided by the population - a measure of living standards
17 of 19
Index numbers
A weighted average of a group of items compared to a given base value of 100
18 of 19
weighting
where a commodity is given a weighting proportional to its importance in the general pattern of consumer spending.
19 of 19

Other cards in this set

Card 2

Front

the total value of goods and services supplied in the economy.

Back

Aggregate supply

Card 3

Front

the capacity of the economy to produce more goods and services over time. (plus diagram)

Back

Preview of the back of card 3

Card 4

Front

the total value of goods and services produced in the economy

Back

Preview of the back of card 4

Card 5

Front

where the economy is producing less than its trend output

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 Macroeconomic indicators resources »