The measurement of macroeconomic performance

Cards (19)

  • 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.