MACRO Flashcards
(19 cards)
Inclusive growth
Rate of growth that is sustained over a period of time, is broad based across economic sectors with productive employment opportunities created for the majority of a country’s population
Sustainable growth
Sustained rate of economic growth which can be achieved without causing other significant economic problems like depleted resources and environmental problems, especially for future generations
Actual growth
Increase in the real national output of an economy in a given time period due to factors that result in a rise in AD and/or AS
Potential Growth
Long term expansion of an economy’s productive potential due to an increase in productive capacity arising from the rise in quantity and or quality of FOPs
High and Sustained Growth
Potential output expanding continuously while increasing economic activity
AD
Qty of domestically produced G&S that HH, govt, firms and foreigners are w&a to buy at each possible GPL
AS
total output of G&S that the firms in a country would like to produce and set at each GPL
Negative economic growth
fall in real GDP over time. if real gdp falls over for over 2 consecutive quarters, economy is in a recession
unsustainable growth
Rate of growth in a country results in the degradation of the environment and depletion of resources for future generations
Unemployment rate
Unemployment rate measures the percentage of the labour force of legal working age who are without jobs but are available for work, willing to work and actively seeking work at current wage rates.
DD Def UN
occurs when economy is operating below full employment level of output and occurs when ↓ persistently falls/remain low
Structural UN
occurs when there is a skills mismatch b/w the skills possessed by the workers and the skills required by employers
inflation
sustained increase in GPL of economy
Unemployment
people are willing and able to work but are unable to find jobs
DD- Pull inflation
AD↑ near full employment level of output, resulting in ↑GPL
Cost-Push inflation
↑country’s GPL caused by ↓SRAS of the country
BOT deficit
country’s nominal import expenditure exceeds its nominal export revenue
