Economic Performance Flashcards
Activity rate/ participation rate
Proportion of the population of working age in a job or actively seeking work
Harrod-Domar model
Model illustrating the importance of savings and investment as key factors of economic growth
Investment
Increase in the capital stock of an economy
Money illusion
When individuals confuse nominal and real values when making economic decisions
Net inward migration
When the number of migrants entering a country exceeds the number exiting the country
Net outward migration
When the number of migrants entering a country is less than the number exiting the country
Non-accelerating inflation rate of unemployment (NAIRU)
The rate of unemployment consistent with a country experiencing a stable rate of cost & price inflation
Unemployment rate
The unemployment level as a proportion of the labour force
