Economic Growth Flashcards
Big mac index
The Big Mac index is a way of measuring Purchasing Power Parity (PPP) between different countries. By converting the average national Big Mac prices to U.S. dollars (S) the same goods can be informally compared. This can tell us something about whether a currency is under or overvalued in foreign exchange markets.
BRICS
The BRICS grouping – Brazil, Russia, India, China and South Africa – short-hand for the rise of emerging markets. The BRICs have a bigger share of world trade than the USA.
Constant price
Constant prices tell us that the data has been inflation adjusted.
Economic cycle
Variations in the annual rate of growth of real national output (GDP) over time.
Economic development
Long run improvements in broad measures of income per capita, education and health outcomes and reductions in extreme poverty, hardship and inequality.
Economic growth
An increase in the real value of goods and services produced as measured by the annual % change in real GDP. Also, a long-run increase in a country’s productive capacity.
Economic shocks
Unpredictable events such as volatile global prices for oil, gas and foodstuffs.
Economic stability
When growth, prices and unemployment do not change much from one year to another.
Emerging markets
Term commonly used to describe the financial markets of developing countries.
Full capacity output
Level of GDP where all available factor inputs are fully employed.
Globalisation
A process in which countries have become increasingly integrated and inter-dependent.
GNI
Income generated from resources owned by inhabitants and businesses of a country.
Green GDP
A popular term for environmentally adjusted gross domestic product.
Gross domestic product (GDP)
Total monetary value of output, spending and factor incomes generated within the geographical boundaries of a country in a given time period.
GDP per capita
National income per head of population, used as a baseline measure of living standards, measured by total GDP/resident population.