The measurement of Macroeconomics performance Flashcards
Availability of credit
Funds available for firms and households to borrow
Base year
the first year in an economic or financial index
Black (informal, shadow market)
Economic activities that occurs beneath the governments radar
Consumer prices index (CPI)
An official measure used to calculate the rate of consumer price inflation, using a basket of common goods
Claimant count
A method of measuring unemployment by
counting all of those who claim
the Jobseekers Allowance and other
unemployment related benefits
Economic shock
Unexpected events and their effects on
economies; may be demand side or supply
side
Credit crunch
Occurs when there is low availability
of credit in the economy
Exchange rate
Market value of all products produced
per annum by the labour and property
supplied by the citizens of one country
Full employment
All those willing and able to work are
able to find jobs.
Exports
Domestically produced goods and
services sold to residents of other
countries
Gross National Income (GNI)
The sum of value added by all producers who reside in a nation, plus product taxes not included in the value of output, plus receipts of primary income from abroad
Gross National Product (GNP)
Market value of all products produced
per annum by the labour and property
supplied by the citizens of one country
Imports
Non-domestically produced goods and
services sold to residents of this country
Index numbers
Numbers allowing accurate comparisons
over time to be made. The base year
value is typically 100
Inflation rate target
The CPI inflation rate target set by the
government, which the Bank of England
attempts to achieve; currently 2%.
Job Seeker’s Allowance (JSA)
Unemployment-related benefit
Labour Force Survey
A quarterly survey of UK households,
recording information on the personal
employment circumstances of the
respondents
Liquidity
The ease with which an asset can be
turned into cash without loss or delay
Macroeconomics
Involves the study of the whole economy
at the aggregate level.
Macroeconomic stability
Occurs when there is low volatility of key
macroeconomic indicators
Marginal propensity to consume (MPC)
The proportion of an increase in
disposable income that is spent on
consumer goods.
National wealth
The stock of all goods with value in an
economy
Per capita
Per person/ per head
Performance indicator
Provides information used to judge
success or failure of a government
policy.
Policy instrument
Tool or set of tools used to try and meet a policy objective
Policy objective
Target or goal policy-makers aim to hit
Price index
An index number showing the extent to
which a set of prices has changed in
comparison to the prices in the base
year
Purchasing Power Parity (PPP)
Adjustments of exchange rates to reflect
the actual purchasing power of a
currency.
Wealth
Stock of assets
Retail prices index (RPI)
An older measure used to calculate the
rate of consumer price inflation
Weighting
When certain data items in a set are
assigned a higher or lower importance
than other data items in the set
