2.1 measures of economic performance Flashcards
(27 cards)
gross domestic product (GDP)
total value of goods and services produced in a country over a period of time
real GDP
GDP adjusted for inflation
nominal GDP
GDP measured at current prices not adjusted for inflation
GDP per capita
GDP divided by the population a measure of average income
economic growth
an increase in real GDP over time
inflation
a general rise in the price level
deflation
a general fall in the price level
disinflation
a fall in the rate of inflation(prices are still rising but more slowly)
consumer price index CPI
the official measure of inflation in the uk excludes housing costs
retail price index
an older measure of inflation that includes housing costs
demand-pull inflation
inflation caused by an increase in aggregate demand
cost-push inflation
inflation caused by rising costs in production
unemployment
when people are willing and able to work but cannot find jobs
employment
people currently in work
labour force/workforce
people who are employed or actively seeking work
unemployment rate
the percentage of the labour force that is unemployed
claimant count
number of people claiming unemployment related benefits
unemployment rate
the percentage of the labour force that is unemployed
labour force survey
a survey based measure of unemployment based on ILO definitions
underemployment
when workers are in the jobs that do not use their full skills or are working part time when they want full time
balance of payments
a record of all economic transactions between a country and the rest of the world
current account
part of the balance of payments that includes trade in goods and services, income , transfers
trade deficit
when imports exceed exports
trade surplus
when exports exceeds imports
