Th2: Definitions 1 Flashcards
Actual growth
economic growth measured by changes in real GDP
Aggregate demand
the total level of demand in an economy at any given price at a moment in time
Aggregate supply
the total amount of output in the economy at any given price at a moment in time
Animal spirits
the level of confidence of business owners
Balance of payments
a record of all financial dealings over a period of time between economic agents of one country and another
Base year
a year chosen as a good comparison in a series of data when building an index - it is automatically given an index figure of 100
Boom
the peak of the business cycle, when growth is high
Budget
where the government lays out their spending and taxation plans
Budget deficit
when the government spends more money than it receives
Budget surplus
when the government receives more money than it spends
Circular flow
a model of the economy which shows the flow of goods and services, the factors of production and money around the economy
Claimant count
a measure of unemployment - the number of people receiving benefits for being unemployed
Consumer price index (CPI)
official measure used to calculate the rate of inflation, using a weighted basket of goods
Consumption
consumer spending on goods and services
Cost push inflation
inflation caused by a decrease in aggregate supply
Current account
a record of the payments for the purchase and sale of goods and services, as well as income and transfers
Current account deficit
when more money leaves the country than enters it, so the current account is negative
Current account surplus
when more money enters the country than leaves, so the current account is positive
Cyclical unemployment
unemployment caused by a lack of aggregate demand
