Macro

• Availability of credit refers to the funds available for firms and households to borrow.
• The base year is the first year in an economic or financial index.
• Black (informal, shadow) market refers to economic activities that occur beneath the government's radar.
• Claimant count is a method of measuring unemployment by counting all those who claim the Jobseekers Allowance and other unemployment related benefits.
• Consumer prices index (CPI) is an 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.
• Economic shock refers to unexpected events and their effects on economies; may be demand side or supply side.
• Exchange rate is the market value of all products produced per annum by the labour and property supplied by the citizens of one country.
• Exports are domestically produced goods and services sold to residents of other countries.
• Full employment is when all those willing and able to work are able to find jobs.
• Policy instrument is a tool or set of tools used to try and meet a policy objective.
• Policy objective is the target or goal policy-makers aim to hit.
• Price index is an index number showing the extent to which a set of prices has changed in comparison to the prices in the base year.
• Weighting is when certain data items in a set are assigned a higher or lower importance than other data items in the set.
• Macroeconomic stability is the ability of an economy to maintain stability over time, with respect to inflation, unemployment, and economic growth.
• Purchasing Power Parity (PPP) is an adjustment of exchange rates to reflect the actual purchasing power of a currency.
• Marginal propensity to consume (MPC) is the proportion of an increase in disposable income that is spent on consumer goods.
• Wealth is the stock of assets.
• Retail prices index (RPI) is an older measure used to calculate the rate of consumer price inflation.
• Performance indicator provides information used to judge success or failure of a government policy.
• Per capita is the per person or per head measure.
• National wealth is the stock of all goods with value in an economy.
• Macroeconomics involves the study of the whole economy at the aggregate level.
• Index numbers are numbers allowing accurate comparisons over time to be made.
• Job Seeker's Allowance (JSA) is an unemployment-related benefit.
• Liquidity is the ease with which an asset can be turned into cash without loss or delay.
• Inflation rate target is the CPI inflation rate target set by the government, which the Bank of England attempts to achieve; currently 2%.
• Labour Force Survey is a quarterly survey of UK households, recording information on the personal employment circumstances of the respondents.
• Macroeconomic stability occurs when there is low volatility of key macroeconomic indicators.
• Gross National Income (GNI) is the sum of value added by all producers who reside in a nation, plus product taxes not included in the value of output, plus receipts of primary income from abroad.
• Imports are non-domestically produced goods and services sold to residents of this country.
• The base year value is typically 100.
• Full employment is defined as the state where all available jobs are filled by workers who are actively seeking employment.
• Gross National Product (GNP) is the market value of all products produced per annum by the labour and property supplied by the citizens of one country.
• Accelerator: A change in the level of investment into capital goods, brought about by a growth of aggregate demand.
• Actual output: The level of actual output produced in the economy in a year.
• Aggregate demand: Total planned spending on real output produced by the economy.
• The level of economic growth that is sustainable, without putting upward pressure on inflation is referred to as the sustainable growth rate.
• Withdrawal refers to the spending power exiting the circular flow of income resulting from savings, taxation and imports.
• Technological progress is a trend growth rate.