2.1.2 Macroeconomic indicators Flashcards
gdp
Real GDP defnition
= value of all incomes eraned in an economy over a period of time
gdp
Real GDP measures…
value of GDP after removing inflation effect - ensures any GDP rise represents output of goods and services
gdp
Real GDP gov objective
wants to achieve 2-3% positive growth per year
gdp
Real GDP PER CAPITA definition
= average income per person
gdp
Real GDP PER CAPITA use
to make comparisions betweens countries standard of living + makes them more meaningful
gdp
Real GDP PER CAPITA formula
£ = total real GDP / population level
pricelevels
2 main UK measures of price level that are used to record rate of inflation?
- CPI (consumer price index)
- RPI (retail price index)
price levels
CPI + RPI both measure?
include price of goods and services typically brought by UK households
price levels
“official” measure used to calculate inflation?
CPI
CPI
CPI is calculated by?
combining price data for UK as a whole for variety of products
CPI
CPI represents?
spending patterns of UK average household
CPI
What is used to find typical household spending?
Basket of goods = selection of products w/in price index of typical spending, updated anually as new products + declining popularity
CPI
CPI issues
- based on typical fam - not representive
- incl. items not everyone buys
- changing quality of item snot taken into account
- not always comparing like w/ like - updated anually.
unemployment
which 2 measures are there typically used?
- Labour force survey (LFS)
- Claiment count
unemployment measures
Claiment count
no. of people recieiving welfare benefits or unemployment - usually Job Seekers Allowance.
