Economic Performance Flashcards
(27 cards)
Balance of payments
Record of a country’s trading and financial transactions with the rest of the world
Balance of trade
Difference between the monetary value of an economy’s exports and their imports
Balance of trade deficit
When the monetary value of an economy’s exports is less than their imports
Balance of trade surplus
When the monetary value of an economy’s exports exceed their imports
Cost push inflation
A rise in the price level due to an increase in costs of production
Current account deficit
When currency outflows in the current account exceed currency inflows
Current account balance of payments
Measures of monetary flow into/ out of an economy based on balance of trade in goods and services
Cyclical employment
Unemployment caused by a lack of AD
Deflation
The persistent fall in the average price level
Disinflation
A fall in the rate of inflation
Demand pull inflation
A rise in the price level due to an increase in AD
Economic cycle
Upswings and downswings in aggregate economic activity over a period of time
Economic performance
Success and/or failure in meeting economic objectives
Economic recovery
Short run econ growth after a recession
Frictional unemployment
Unemployment caused by transferring between two jobs
Import-cost inflation
A rise in the price level due to an increase in the price of imported resources
Inflation
The persistent rise in the average price level
Investment
Increase in the capital stock of an economy
Involuntary unemployment
When there are no jobs available at the market wage rate for those willing and able to work
Long run econ Growth
An increase in the productive potential of the economy
Negative output gap
How much lower actual real output is than the trend output level
Output gap
The difference between actual real output and the trend output level
Positive output gap
How much higher actual real output is than the trend output level.
Recession
2 negative quarters of growth
