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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Actual economic growth |
The rate if growth of GDP in a period |
GDP |
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aggregate demand |
The total amount of spending on goods and services produced in an economy during a period of time |
Total period |
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Automatic stabilisers |
Effects by which government expenditure adjusts to offset the effects of recession and boom without the need for active intervention |
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Average propensity to consume |
The proportion of income that households devote to consumption |
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Balance of payments |
Set of accounts showing the transactions conducted between residents of a country and the rest of the world |
Accounts |
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Bank rate |
The interest rate that is set by the monetary policy committee of the bank of England in order to influence inflation |
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Business cycle |
A phenomenon whereby GDP fluctuates around its underlying trend following a regular pattern |
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Capital productivity |
A measure of output per unit of capital |
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Circular flow of income, expenditure and output |
A model of the economy which shows the movement of goods and services between households and firms and their corresponding payments in money terms |
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Claimant count of unemployment |
The number of people claiming the jobseekers allowance each month |
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Consumer price index (cpi) |
Measures general level of prices of goods in the UK, rate of change been used as gov inflation target since January 2004 |
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Consumption |
Total planned household spending |
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Consumption function |
The relationship between consumption and disposable income effected by how much households spend on consumption |
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Cost push inflation |
Inflation initiated by an increase in the costs faced by firms arising on the supply side |
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Crowding out |
A process by which an increase in government expenditure crows out private sector activity by raiding the cost of borrowing |
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Cyclical unemployment |
Unemployment that arises during he downturn of the economic cycle such as a recession |
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Deflation |
A fall in the average level of prices (negative inflation) |
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Demand deficient unemployment |
Not enough demand in an economy so the equilibrium level of output is below full employment |
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