Key terms Flashcards
Indicators and Objectives
Economic growth-Increasing
Unemployment-Lower than 3%
Inflation- Around 2% (+/-1%)
Balance of payments- Avoid large deficits (Imports(M)>Exports(X)
Living standards/Standard of living
Degree of wealth available to someone. This is measured by real GDP per capita
Living costs/Cost of living
Monetary costs of maintaining a particular standard of living
Welfare
Government “assistance” (financial)
Changes in GDP (Gross Domestic Product)
Total value of goods and services produced within a country’s borders in 1 year. In the trillions when given a monetary value.
Real GDP
The general GDP of an economy adjusted for inflation (Real=Nominal-Inflation)
Nominal GDP
Not adjusted for inflation
Labour force
People of working age who are willing and able to work
Labour force survey
Data is used from their systems to measure employment and unemployment
Claimant count
An unemploment benefit to assist people looking for work
Structural unemployment
Results from industrial reorganization, typically changes in technology (e.g. robots) or declining industry
Frictional unemployment
Exists because of people moving from one job to another (between jobs, students)
Seasonal unemployment
Unemployment at certain times of the year
Cyclical Unemployment
Due to downturn in the business cycle (recession)
Real GDP capita
The GDP per person that is adjusted for inflation
