Indicators and objectives

Question 1

Economic growth

Answer 1

The capacity to increase output ( production of goods and services ) over time. The objective is for it to be increasing.

Question 2

How is economic growth measured

Answer 2

It is measured through the changes in GDP

Question 3

Unemployment rate

Answer 3

Unemployment rate is the percentage of the total labour force currently seeking work. The objective is for it to be lower than 3%

Question 4

How to measure unemployment

Answer 4

Unemployment is measured in 2 ways from the office of national statistics. The 2 ways are labour force survey and claimant count.

Question 5

4 types of unemployment

Answer 5

Structural
Frictional
Seasonal
Cyclical

Question 6

Structural unemployment

Answer 6

Results from industrial reorganization, typically changes in technology (e.g robots) or declining industry

Question 7

Frictional Unemployment

Answer 7

Exists because of people moving from one job to another (between jobs, students)

Question 8

Seasonal Unemployment

Answer 8

Unemployment at certain times of the year (e.g. seasons, weather)

Question 9

Cyclical Unemployment

Answer 9

Due to downturn in the business cycle (recession)

Question 10

Costs of unemployment

Answer 10

Costs taxpayer more money
People cant provide for themselves and their families
A lower change in GDP
Higher consumer prices and less purchasing power
Decreases in consumption
Higher crime rates and poverty

Question 11

Productivity

Answer 11

An economic measure of output per unit of input. It measures efficiency and is usually measured as output per hour.