1.1 the measurement of macroeconomic performance Flashcards
availability of credit
funds available for firms and households to borrow
base year
the first year in an economic or financial index
black (informal, shadow) market
economic activities that occur beneath the government’s radar
claimant count
a method of measuring unemployment by counting all of those who claim the jobseekers allowance and other unemployment related benefits
consumer prices index (CPI)
official measure used to calculate the rate of consumer price inflation, using a basket of common goods
credit crunch
occurs when there is low availability of credit in the economy
economic shock
unexpected events and their effects on economies; may be demand side or supply side
exchange rate
market value of all products produced per annum by the labour and property supplied by the citizens of one country
exports
domestically produced goods and services sold to residents of other countries
full employment
all those willing and able to work are able to find jobs
gross national income (GNI)
sum of value added by all producers who reside in a nation, plus product taxes not included in the value of output, plus receipts of primary income from abroad
gross national product (GNP)
market value of all products produced per annum by the labour and property supplied by the citizens of one country
imports
non-domestically produced goods and services sold to residents of this country
index numbers
numbers allowing accurate comparisons over time to be made
the base value is typically 100
inflation rate target
the CPI inflation rate target set by the government, which the Bank of England attempts to achieve
currently 2%
job seeker’s allowance (JSA)
unemployment related benefit
labour force survey
a quarterly survey of UK households recording information on the personal employment circumstances of the respondentsl
liquidity
the ease with which an asset can be turned into cash without loss or delay
macroeconomics
involves the study of the whole economy at the aggregate level
macroeconomic stability
occurs when there is low volatility of key macroeconomic indicators
marginal propensity to consume (MPC)
the propensity of an increase in disposable income that is spent on consumer goods
national wealth
the stock of all goods with value in an economy
per capita
per person/per head
performance indicator
provides information used to judge success or failure of a government policy
policy instrument
tool or set of tools used to try and meet a policy objective
policy objective
target or goal policy-makers aim to hit
price index
an index number showing the extend to which a set of prices has changed in comparison to the prices in the base year
purchasing power parity (PPP)
adjustments of exchange rates to reflect the actual purchasing power of a currency
retail prices index (RPI)
an older measure used to calculate the rate of consumer price inflation
wealth
stock of assets
weighting
when certain data items in a set are assigned a higher or lower importance than other data items in the set
