Measurement Of Macro Performance Flashcards
(26 cards)
Availability of credit
Funds available for firms and households to borrow
Base year
The first year in an economic or financial index
Back(informal, shadow) market
Economic activities that occur below the governments radar
Claimant count
A method of measuring unemployment by counting all of those who claim unemployment benefits
Consumer price index (CPI)
Official measure used to calculate all the rate of consumer price inflation, using a basket of common goods
Credit crunch
Occurs when there is a low availability of credit in the economy
Economic shock
Unexpected events and their effects on economies; may be demand side or supply side
Exchange rate
The price of a currency measured in terms of another currency
Exports
Domestically produced goods sold to other countries
Full employment
All those willing and able to work are able to find jobs
Gross national income (GNI)
Sum of value added by all producers who reside in a nation
Gross national product (GNP)
Market value of all products produced per annum by the labour
Imports
Non-domestically produced goods and services sold to residents of this country
Index numbers
Numbers allowing accurate comparisons over to be made
Inflation target rate
2%
Job seekers allowance (JSA)
Unemployment benefits
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
Marginal propensity to consume (mpc)
The proportion of an increase in disposable income that is spent if consumer goods
National wealth
The stock of all goods in an economy
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
