Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

H1 Economics > Key Economic Indicators (KEI) > Flashcards

Key Economic Indicators (KEI) Flashcards

1
Q

Economic Growth (EG)

Definition

A

An increase in the Real Gross Domestic Product (GDP) of a country.

KEI: EGR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Economic Growth Rate (EGR)

Formula

A

[GDPcurrent year - GDPprevious year/ GDPprevious year] x 100%

Real GDP preferred over Nominal GDP to ensure that EG is due to increased quantity of G&S

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Economic Growth (EG)

Types

A
  • Actual Growth
  • Potential Growth
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Actual Growth (AG)

Definition

A

An increase in the national output actually produced for a given period of time

KEI: Percentage increase in Real GDP (% ↑ in Real GDP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Potential Growth (PG)

Definition

A

An increase in the productive capacity of the economy for a given period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Price Stability (PS)

Definition

A

A low & stable rate of Inflation ie. prices increases gradually & do not fluctuate in a wild & unpredictable manner

KEI: CPI & IR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Consumer Price Index (CPI)

Definition

A

A measure of the price of a fixed basket of good & services purchased by a typical household.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Consumer Price Index (CPI)

Formula

A

Value of ‘weighted basket’ in current year/ Value of ‘weighted basket’ in base year x 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inflation Rate

Definition

A

The change in CPI values year on year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Inflation Rate (IR)

Formula

A

[CPIcurrent year - CPIprevious year/ CPIprevious year] x 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Full Employment

Definition

A

Non-zero, low rate of unemployment that is compatible with price stability, when all FOPs are fully and efficiently utilised.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Unemployment

Definition

A

The situation where people who are willing and able to work and are actively seeking work but cannot find jobs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Unemployment Rate (UR)

Formula

A

[No. of unemployed persons/ Labour force] x 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Unemployment Rate

Limitations

A
  • Discouraged Worker Syndrome
  • Movement in & out of the Labour Force
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Economically Active Population

Definition

ie. Labour Force

A

Persons aged 15 years and over who were either employed or unemployed during the reference period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Economically Inactive Persons

Definition

A

Persons who are unwilling and/or unable to work and are not actively looking for a job during the reference period.

eg. full-time students, unpaid homemakers, retirees etc.

H1 Economics (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions