definitions Flashcards
Financial account
Direct capital investment, financial investment, and banking flows and reserves
GDP per capita / head
The total value of output produced domestically in a country in the year divided by population
GDP/population
GDP per capita PPP
GDP per capita adjusted to an exchange rate which equalises the price of a basket of identical traded goods and services in two different countries
GNI
GDP, plus factor incomes earned by foreign residents minus income earned in the domestic economy by non-residence
Hyperinflation
Occurs when a country experience is very high, unusually accelerating rate of inflation rapidly eroding the real value of the currency
index numbers
An index number is an economic data figure, reflecting price or quantity, compared with the standard or base value
Labour force
those in employment, plus the unemployed both groups are economically active
Labour force survey
Uses the ILO definition of unemployment. Survey of 60,000 people done four times per year.
LRAS
An increase in the productive capacity in the economy
net errors and omissions
A balancing item that takes account of any discrepancies arise in calculating the balance of payments
Nominal GDP formula
Real GDP/(100/Price index)
PPP
purchasing power parity. The exchange rate which equalises the price of a basket of identical traded goods and services into different countries.
Price index formula
100 times GDP
Real GDP
The countries output measured in constant prices. Adjusted after inflation.
Real GDP formula
GDP times 100 divided by price index
