Measurement of macroeconomic peformance Flashcards
What are the macro objectives
Economic growth
Low and stable inflation(2%+/-1%)
Low unemployment
Stable trade balance
Low government borrowing
minimise inequality
stable exchange rate
What are some macro conflicts
Economic growth vs inflation
Unemployment vs inflation
Economic growth vs balance of payments
Budget deficit vs economic growth
Real gdp
takes inflation in to acount
nominal gdp
takes nothing into acount
gdp per capita
divided by total population
Index number
current number
———————— x100
base number
Trade balance
relationship between value of imports and value of exports
Trade deficit
Value of imports > value of exports
Trade surplus
value of exports > value of imports
Current expenditure
on state provided goods and services provided on a recurrent basis
eg nurses salary
Capital expenditure
infrastructure spending
eg hospitals, prisons
Productivity =
total output
——————
number of workers
