Th2: Definitions 3 Flashcards
Imports
goods and services bought from foreigners that takes income out of the country
Inactive
those neither employed nor unemployed - those not participating in the job market. people of working age not seeking employment as well as those seeking employment but not being able to start work
Income
a flow of assets
Index number
numbers allowing accurate comparisons over time to be made. The base year value is typically 100
Indirect tax
tax where the person charged with paying the money to the government is able to pass on the cost to someone else
Inflation
the general rise in prices of goods and services that erodes the purchasing power of money
Injection
spending power entering the circular flow of income resulting from investment, government spending and exports
Interventionist supply side policies
policies designed to correct market failure, where the government intervenes in the market
Investment
spending by businesses on capital goods, which leads to the creation of real goods
Labour Force Survey
a measurement of unemployment which surveys people to class them as unemployed, employed or inactive under the International Labour Organisation (ILO) defintions
Living standards
the quantity of life enjoyed by people in a country
Long run
when all factors of production are variable
Long run aggregate supply (LRAS)
the total output of an economy can produce when operating at full output
Long run trend growth rate
the average sustainable rate of economic growth over a period of time
Marginal propensity to consume
the proportion of an increase in income spend on consumption
change in consumption
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change in income
