Macroeconomic Indicators Flashcards
What is Real GDP
-Real GDP is the value of GDP adjusted for inflation
What does Gross Domestic Product measure?
It measures the quantity of goods and services produced in an economy (national output).
What is Real GDP per Capita?
Real GDP per capita is the value of real GDP divided by the population of a country.
This measures the average output per person in an economy.
What does CPI measure
Consumer Price Index measures household purchasing power with the ‘family expenditure survey’
-The goods are weighted according to how much income is spent on each item.
What does RPI measure
RPI is similar to CPI but it includes housing costs such as payments on mortgage interest and council tax.
What are the measures of unemployment?
-The Claimant Count
-The UK labour force survey conducted by the International Labour Organisation.
What is the Claimant Count?
-This counts the number of people claiming unemployment related benefits. E.g. Job seeker’s allowance.
How does the LFS collect data of unemployment
It directly asks people their employment status.
Define Productivity
Productivity is defined as output per worker per period of time.
Productivity increases if more output can be produced with fewer units of input.
What is the Balancing of Payments on current account?
-The balance of payments is a record of all financial transitions made between consumers, firms and the government from one country with other countries.
What is measured in the balance of payments on current account
It measures imports and exports.
What is the balance of payments made up of?
-The current account
-The capital account
-The official financing account.
What are the Macroeconomic indicators?
-Real GDP/ Real GDP per capita
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-CPI & RPI
-Measures of Productivity
-Balance of Payments on current account
Definition of Gross Domestic Product
The value of goods and services produced in the economy over a period of time.
