Macroeconomic Indicators Flashcards
What does GDP measure?
GDP measures the value of real output of the economy over a period of time; a rise in GDP indicates economic growth.
What is nominal GDP?
Nominal GDP is the monetary value of all goods and services produced in the economy (GDP at current prices).
What is real GDP?
Real GDP is the nominal value of GDP adjusted for inflation (GDP at constant prices).
What is real GDP per capita?
Real GDP per capita is national income per person, often used as a proxy measure for the standard of living.
What is the difference between value and volume?
The value of goods and services shows what they are worth; the volume shows the number that are produced.
What is the ‘headline’ rate of inflation?
The ‘headline’ rate of inflation is the annual % change in the Consumer Price Index (CPI), which tracks changes in the prices of a basket of goods and services purchased by an average household.
What is the Retail Price Index (RPI)?
RPI is a measure that includes some items not in the CPI, such as council tax & mortgage interest payments; it is often used to calculate increases in welfare benefits, pensions, index-linked bonds and wage negotiations.
What is the Labour Force Survey?
The Labour Force Survey asks 60-70,000 UK households to self-classify as being employed, unemployed or economically inactive.
What is the Claimant Count?
The Claimant Count counts the total number of recipients of Job Seeker’s Allowance (JSA) added to those looking for work who claim Universal Credit (UC).
What is productivity?
Productivity is a measure of supply-side efficiency.
What is total factor productivity?
Total factor productivity is output per unit of input.
What is labour productivity?
Labour productivity is output per hour, output per job or output per worker employed.
What is the Balance of Payments?
The Balance of Payments is a record of all the flows of money between the residents of one country and the rest of the world.
What does the current account of the Balance of Payments record?
The current account records international trade in goods, services, primary income & secondary income.
What is the balance of trade in goods and services?
The balance of trade in goods and services is the value of exports minus the value of imports. A positive balance indicates a trade surplus, while a negative balance indicates a trade deficit.
How are public finances measured?
Public finances are measured by looking at the budget deficit and the National Debt as a % of GDP.
How is income inequality measured?
Income inequality is measured by the Gini coefficient.
How is international competitiveness measured?
International competitiveness is measured by global competitiveness indices, e.g., World Economic Forum.
What should be considered when comparing macroeconomic indicators across countries?
When comparing macroeconomic data across countries, check for like-for-like comparisons, consider the exchange rate or purchasing power parity (PPP), and assess the accuracy of data collection.
