Macro : Measurement Of The Economy Performance Flashcards
Economic growth definition
Increase in a country’s goods and services
Price stability definition
Managing the level of prices of a range of goods and services
Stable balance of payment on current accounts definition
The money coming in form exports and the money coming out from imports being equal
Balancing the government budget
The value of government expenditure and the value of taxation being equal
Achieving an equal distribution of income definition
The gap between the rich and the poor is not too big
Name 8 Government macroeconomic policys
Economic growth Reduce unemployment Stable balance of payment Price stability Concern for the environment Equal distribution of income Balancing the budget Keep inflation at 2%
Real GDP definition
The value of GDP after removing the effect of inflation
Real GDP per capita formula
Real total GDP
———————
Population level
(the higher the standard of living in a country. )
Inflation definition
An increase in the average in the price level measured over the year
Labour force definition
Those of working age who are either in work or actively seeking work
Economically inactive definition
Those of working age who are not in work or looking for work
Rate of economic growth formula
Change in GDP
———————— x100
Original GDP
Nominal GDP
GDP adjusted for inflation
Inflation defintion
Inflation is the rise in the average price of goods and services over a period of time
Deflation definition
fall in the rate of average price (below zero) of goods and services over a period of time
