text books: economic growth Flashcards
what is aggregate demand?
total demand for goods and services in a certain market
more people are employed, the economy is more productive and aggregate demand will also increase. what does this mean for more people?
they will have a greater income
what can the governments other objectives be that do not involve the four main macro objectives?
- balance the budget
- protecting the environment
- to achieve greater income equality
in the short run economic growth is measured by what?
percentage change in real national output (GDP)
what is nominal GDP?
total output of goods and services produced by an economy in a given time period, not adjusted for inflation
distinguish between real and nominal GDP
nominal is the total output of goods and services produced by an economy in a given time period, not adjusted for inflation. real GDP is when its adjusted for inflation
define real per capita GDP
total output of goods and services produced by an economy in a given time period divided by that country’s population
what is gross national income?
the total income received by the country from its residents and businesses including income from abroad
what is gross national product?
the value of all goods and services produced and the income of a country’s residents and businesses
what is the difference between deflation and disinflation?
deflation is when the price is falling or negative inflation and disinflation is when the inflation rate is falling but the price is still rising but at a slower rate
how does a claimant count measure unemployment?
measures unemployment through the number of people claiming job seekers allowance
how does a ILO measure unemployment?
its a survey that measures unemployment by counting people who have been out of work and looking for at least 4 weeks and are ready to start working in the next two weeks
