Availability of credit: Funds available for firms and households to borrow.
Claimant count: A method of measuring unemployment by counting all of those who claim the Jobseekers Allowance and other unemployment related benefits.
Full employment: All those willing and able to work are able to find jobs.
Consumer prices index (CPI): Official measure used to calculate the rate of consumer price inflation, using a basket of common goods.
Credit crunch: Occurs when there is low availability of credit in the economy.
Imports: Non-domestically produced goods andservices sold to residents of this country.
Index numbers: Numbers allowing accurate comparisons over time to be made. The base year value is typically 100.
Inflation rate target: The CPI inflation rate target set by the government, which the Bank of England attempts to achieve; currently 2%.
Labour Force Survey: A quarterly survey of UK households, recording information on the personal employment circumstances of the respondents.
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.
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 on consumer goods.
National wealth: The stock of allgoods with value inthe economy.
Exports: Domestically produced goods andservices sold to residents of other countries.
Policy instrument: Tool or set of tools used to try and meet a policy objective.
Policy objective: A target or goal policy-makers aim to hit.
Retail prices index (RPI): An older measure used to calculate the rate of consumer price inflation.