Transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient functioning of a country and its economy.
Lagging Indicators
Indicators which tend to follow economic cycles e.g. unemployment.
Leading Indicators
Indicators which predict future economic trends e.g. consumer confidence
Manufacturing
A production industry, which also includes mining, electricity, water & waste management and oil & gas extraction. 11% of total UK GDP in 2019 was manufacturing
National Income
Total income earned by all factors of production in an economy in a given time
Real Wage
Nominal wages adjusted for inflation
Cause of the UK's Low Productivity
-Low levels of R&D (less than 2% of GDP)
-Low levels of investment limit the productive capacity
-Long-term decline in the world price of a major export
-Weak productivity means higher unit costs and lower cost competitiveness
Determinants of Consumption
Income, level of wealth, inflation, interest rates, consumer confidence, availability of credit and demographics
Accelerator Effect
An increase in GDP results in a proportionately larger rise in capital investment
