Macro 1 - Economic growth Flashcards
(26 cards)
Potential growth
A change in the productive potential of the economy
National income
The value of income paid by firms to households in return for land, labour, capital and enterprise
Indirect tax
Tax charged on producers of goods and services is paid by the consumers indirectly
Wealth
A stock of assets
Direct tax
Tax paid straight to the government by the tax payer
Disposable income
The money consumers have left to spend after taxes and costs have been taken away
Income
A flow of assets
Injection
Money entering the circular flow of income resulting from Investment, Gov spending and Exports
Gross Domestic Product (GDP)
The value of goods and services produced in a country over a given time period
Gross National Income (GNI)
The value of goods and services produced in a country over a given time period plus money earnt overseas
Real GDP
GDP adjusted to inflation
Total GDP
The GDP of the whole country
Value of GDP
Nominal value of GDP; GDP at current prices
Volume of GDP
Real values of GDP; the size of the basket of goods
Economic growth
An increase in the long term productive potential in the economy
Nominal GDP
GDP which does not take inflation into consideration
Actual growth
Economic growth measure by chnaged in real GDP
Living standards
The quality of life enjoyed by people in a country
GDP per capita
Total GDP divided by the population
Purchasing Power Parity (PPP)
Exchange rate of one currency to another through comparing a typical basket of goods
Gross national product (GNP)
The value of goods and services produced by citizens of a country; whether they live in the country or not
Export led growth
Economic growth arising from an increase in exports
Long run trend growth rate
The average sustainable rate of economic growth over a period of time
Recession/ Bust
The trough of the business cycle, when growth is low.
