Part 4 Economic Growth Flashcards
(21 cards)
Economic growth
Increase in gdp overtime
Gross domestic product
The value of output produced within a country
GDP per capita
GDP divided by population
Employment
When people who are willing and able to work can find a job
Unemployment
When people who are willing and able to work cannot find a job
Claimant count
A measurement of unemployment using the number of people who claim Unemployment related benefits
Level of unemployment
The total number of people who are in the workforce but don’t have a job
Distribution of income
Thai describes how income is divided between individuals in a country
Income
A flow of money over time often as a reward for use of a factor of production
Price stability
When the general price level either stays the same or rises at a low rate
Inflation
A sustained increase in the general price level
Real
The value of an economic variable that takes account of changes in the general price level
Nominal
The value of an economic variable based on current prices
Consumer price index (cpi)
A measure of the general price level used to calculate inflation rate
Government revenue
The amount of money the government receives
Government spending
The total amount of money spent by the government in a given time period
Direct tax
A tax on income and wealth
Indirect tax
A tax on spending which is imposed on the produce but may then be passed on to consumers through and increase in price
Balanced budget
Is when revenue is equal to government spending
Budget surplus
Is when revenue is greater that government spending
Budget deficit
Is when revenue is less than government spending
