Macro Flashcards
What is the definition of inflation
The general level in the rise of prices
What is the definition of unemployment
Where people of working age are actively seeking work
What is Balance of payments
Measures how much a country exports compared to how much it imports
Growth definition
A country is measured in terms of GDP. Value of all goods and services produced
Trend rate of growth definition
Rate of growth that can be sustained generating any inflationary pressure.
Positive output gap
Occurs when the economy temporarily grows faster than the trend rate operating in the short run beyond its full capacity
Negative output gap
Aggregate demand is growing at a slower rate, or falling in relation to its productive potential.
What are the two types of measurement for unemployment
Claimant Count and Labour Force Survey
What are the different types of unemployment
Cyclical, structural, frictional, seasonal, technological and regional
Claimant Count
Government counts how many people are registered as unemployed.
Labour force survey
This where people are surveyed and asked if they are seeking work
Cyclical unemployment
Unemployment caused by a recession.
Structural unemployment
Caused by whole industries disappearing
Seasonal unemployment
Where Work is only available at certain times
Technological unemployment
Where workers are replaced by robots
