Macroeconomics Flashcards
Define GDP.
Gross domestic product is a measure of the economy’s national income.
How often is GDP data produced?
Quarterly
What is the difference between GDP and Real GDP?
Real GDP removes the effect of inflation.
What is Real GDP Per Capita useful for?
Directly comparing countries economies.
How do you calculate Real GDP per capita?
Real GDP per capita (measured in £)= Real total GDP (in £) / Population level
Increases in the price level over time are referred to as …
inflation
What is the UK Governments target for the rate of inflation?
2%
What is the target error allowance for inflation?
1%
What are the two measures of inflation in the UK?
Consumer Price Index (CPI)
Retail Price Index (RPI)
Who are not counted in the unemployment figures?
People not of working age - children & the elderly
Those of working age who are not actively seeking work are deemed….
economically inactive
What are the two main measures of unemployment in the UK?
The claimant court
The Labour Force Survey (LFS0
The claimant court: the number of people receiving…
welfare benefits for unemployment
The usual benefit received by the unemployed
Jobseeker’s Allowance (JSA)
The Labour Force Survey is a monthly sample of people, it records those who say they … ……. … …. but cannot find it, regardless of whether they receive …….. or not.
are looking for work
benefits
How do you calculate unemployment rate (%)
Unemployment rate = (number of people unemployed / size of the labour force) x 100
What does productivity measure?
Productivity measures how much output is produced by each unit of labour.
What does labour productivity measure?
Measures the output of workers.
What does capital productivity measure?
Looks at the efficiency of machinery and equiptment.
