Section 8: Measuring Economic Performance Flashcards
What are the four main macroeconomic indicators?
-Rate of economic growth
-Rate of inflation
-Level of unemployment
-The state of the balance of payments
What is GDP
Gross domestic product is a measure of national income. It is the monetary value of the total output of an economy over a given period of time.
What is real GDP?
The monetary value of the total output of an economy with the effects of inflation removed.
What is nominal GDP?
The monetary value of the total output of an economy that has not been adjusted for the effects of inflation.
What is an index number?
A statistic, with a base value of 100, used to measure changes in a selection of related variables.
What is CPI?
The consumer price index is a measure of the price level and inflation based on a weighted basket of goods and services.
What is a limitation of CPI?
Doesn’t include council tax or mortgage interest payments.
What is the rate of unemployment?
The number of people out of work as a percentage of the labour force.
What are the two ways of measuring unemployment?
The Claimant Count and the Labour Force Survey (LFS).
What is the claimant count?
The number of people claiming unemployment-related benefits from the government. Including JSA, universal credit…
What is the labour force survey (LFS)?
A survey done by the International Labour Organisation (ILO) using a sample of the population, asking people who aren’t working if they’re actively seeking work.
