11. The Measurement Of Macroeconomic Performance Flashcards
Aggregate supply
Total value of goods and services supplied in an economy
Economic growth
The capacity of the economy to produce more goods and services over time.
Gross domestic product
The total value of goods and services produced in an economy
Negative output gap
Where the the economy is producing less than its trend rate of output
Positive output gap
When the economy is producing more than its trend rate of output
Trade off.
Where one macroeconomic policy objective reduces, in favour of another objective.
Imports
Goods and services purchased from abroad.
Exports
Goods and services sold abroad
Employment.
Where labour is actively engaged in productive activity usually in exchange for payments such as wages.
Unemployment.
Those without a job who are seeking work at current wage rates.
Exporting
The sale of goods and services to a foreign country generating income for the home country
Importing
The purchasing of goods and services from abroad leading to expenditure for the home country
Economic indicators
Economic statistics which provide information on expansions and contractions of the economic cycle.
Nominal (GDP/National Income/Output)
Figures which aren’t adjusted for inflation.
Real (GDP/National income/output)
Figures adjusted for inflation.
