Key terms Flashcards
Key terms within the Macroeconomic studies
define Economic Growth
an increase in the amount of goods and services produced per head of the population over a period of time
define Unemployment
the amount of unemployed people within a country
define Inflation
the rate of increase in prices over a given period of time
define balance of payments
the record of all international financial transactions made by the residents of a country
Short-Run Growth
the actual annual percentage change in real national output
Long-Run Growth
An increase in the potential productive capacity of the economy
Gross Domestic Product (GDP)
the value of goods and services produced in the economy over a period of time
Real GDP
the value of goods and services produced in the economy over a period of time taking into account inflation
nominal value
expressed in monetary terms i.e. in current prices
Real value
adjusted for inflation by judging figures against a base year
per capita income (GDP per capita)
total income divided by the number of people in the country
volume
the quantity of goods and services produced in a country
Value
the monetary worth of the goods and services produced in a country
Gross National Income
(GNI)
a country’s total level of income - GDP plus net income from abroad for e.g. interest and dividends
