11 Economic performance (MACRO) Flashcards
What is Macroeconomics?
involves the study of the whole economy at the aggregate level
What is Gross domestic product (GDP)
a measure of all the goods and services produced in a country over a period of time
What is Inflation?
a continuous and persistent rise in the price level and a fall in the value of money
What is Unemployment?
occurs when people who are actively searching for employment are unable to find work
What is Balance of payments
a record of all the currency flows into and out of a country in a particular time period
What is meant by Real (ECONOMIC)
a prefix used in economics to indicate that the value has been adjusted for inflation (changes in price over time)
What is meant by Nominal?
a prefix used in economics to indicate the value has not been adjusted for inflation (changes in prices over time)
What is meant by Per capita?
a suffix used in economics to indicate the figure has been divided by the size of the population to give an average per person
What are the four main objectives of UK economic policy?
positive economic growth
low and predictable inflation
low levels of unemployment
satisfactory balance of payments
What is a Index number?
a number used in an index, such as consumer prices index, to enable accurate comparisons over time to be made
What is meant by Consumption?
total planned spending by households on consumer goods and services produced within the economy
How do you calculate the index number for a given year?
(number in current year/ number in base year) x 100
How do you calculate the percentage change between the index points of two given years?
(change in index points/index number for original year) x 100
How do you calculate the real national income of a country in a particular year?
(current year nominal national income x base year price index)/current year price index
What is Consumer price index (CPI)?
the official measure of inflation in the UK
