Definitions

Question 1

Short-run economic growth

Answer 1

Increase in total value/output of goods and services produced in an economy in a given time period
Actual economic growth

Question 2

Long-run economic growth

Answer 2

Increase in the productive potential/capacity of an economy
Increase the total goods and services that could be produced
Potential economic growth

Question 3

Recession

Answer 3

Occurs when actual growth falls/is negative for three consecutive quarters of a year

Question 4

Sustainable economic growth

Answer 4

Growth that meets the needs of the present without compromising the ability of the future generations to meet their own needs

Question 5

Economic development

Answer 5

Process by which real per capita incomes are increased and inhabitants of a country are able to benefit from improves living conditions

Question 6

Gross domestic product GDP

Answer 6

Measure of a countries value of output

Question 7

Real GDP

Answer 7

GDP adjusted for changed in the price level

Question 8

Nominal GDP

Answer 8

Output measured in terms of prices in the year in question

Question 9

Primary/secondary/tertiary sector

Answer 9

Using natural resources
Production of manufactured goods
Production of a service

Question 10

Unemployment

Answer 10

Those who are jobless, available to work and are actively seeking employment
Economically active and not in work

Question 11

Employment

Answer 11

People working for firms or other organisations or self-employed

Question 12

Labour force survey ILO

Answer 12

How many people are in the labour force

Question 13

Claimant count JSA

Answer 13

The number of people flaming job seekers allowance

Question 14

Natural rate of unemployment

Answer 14

Rate of unemployed when labour market is in equilibrium (structural unemployment)

Question 15

Inflation

Answer 15

Sustained increase in the general average price level

Question 16

Deflation

Answer 16

Where there is actually a fall in price level

Negative inflation

Question 17

Disinflation

Answer 17

Fall in inflation rate meaning general price level is increasing at a slower rate

Question 18

Hyperinflation

Answer 18

Rapid and unchecked increase in the price level

Typically involves inflation rates >50%

Question 19

Consumer price index CPI

Answer 19

Examines the weighted average of prices of a basket of consumer goods and services
Measure of general prices in UK used to set governments inflation target

Question 20

Retail price index RPI

Answer 20

Measures the change of average level of prices over a certain amount of time