Week 1 - Macroeconomics and Microeconomics Flashcards
(21 cards)
Microeconomics
how decisions are made by individuals and firms and the consequences of those decisions
macroeconomics
the aggregate behaviour of the economy
output
the level of production and its growth rate
unemployment rate
unemployed people looking for a job, as a share of its labour force
inflation rate
the rate at which the average price level increases over time
national accounts
- measures the nations economic performance
- compares a nations income and output to that of other nations
- tracks the economy conditions throughout the business cycle
consumer spending
the amount of household spending on goods and services
government
collects tax revenues
government spending
purchases of goods and services by the government
investment spending
spending on productive physical capital
exports
goods and services produced domestically and sold to other countries
imports
goods purchased by a countries resident that are produced overseas
recession
periods of economic downturns when output and employment are falling
depression
a very deep and prolonged downturn
expansions
periods of economic upturns when output and employment rising
self regulating economy
problems such as unemployment are resolved without government intervention
keynesian economics
economic slumps are caused by inadequate spending, and they can be mitigated by government intervention
gdp per capita
the level of real GDP at a point in time and divides it by the population to get a measure of income per head
gdp per worker
a measure of income per head of the working population
nominal gdp
the total value of all goods and services produced by an economy, measured using current prices during the year of production
real gdp
the total value of all goods and services produced, adjusted for inflation, using constant prices for a base year
