The measurement of macroeconomic performance

• 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 and services 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 all goods with value in the economy.
• Exports: Domestically produced goods and services 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.
• Wealth: Stock of assets.