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Flashcards

Macroeconomics key term flash cards

Hannah Nad Inglês 109 flashcards

Flashcards do conjunto (109)

  1. 1Budget deficitWhen government spending is greater than tax revenue
  2. 2Business confidenceExpectations about the future of the economy
  3. 3Capital stockThe vela elf the total stock of capital inputs in the economy
  4. 4Claimant countThe number of people claiming unemployment-related benefits
  5. 5Constant pricesMeans that the data has been inflation adjusted
  6. 6Consumer confidenceExpectations about the future of the including IRs, incomes and jobs
  7. 7Consumer Price IndexA measure of the price level in the economy based on the collection of products designed to reflect the consumption basket of the average consumer
  8. 8Cost Push inflationAn increase in the price level caused by a sustained increase in the costs of production
  9. 9Creeping inflationSmall rises in the general price level over a long period
  10. 10Current accountThe overall balance of credits minus debits for trade in goods, trade in services, investment income and transfers
  11. 11Current account deficitThe amount by which money relating to trade, investment etc. going out of a country is more than the amount coming in. A current account deficit implies a net fall of demand in a country's circular flow.
  12. 12Cyclical trade deficitA trade deficit that arises purely due to changes in the economy's cycle, for example many countries run a trade deficit when their economy is growing strongly
  13. 13Cyclical unemploymentUnemployment caused by a lack of AD for goods and services, where national output < than potential output leading to a negative output gap
  14. 14DeflationA persistant fall in the general price level of goods and services
  15. 15DepreciationA fall in the market value of one exchange rate against another
  16. 16DepressionUsed to describe a severe recession which may become a prolonged downturn in the economy and where a nation's GDP falls by at least 10%
  17. 17Discouraged workersPeople often out of work for a long time who give up on job search
  18. 18Disposable incomeGross income after the deduction of income tax and national insurance contributions plus cash welfare benefits. Disposable income is the money that comes into a household from various sources, including welfare benefits but after taxes on income
  19. 19Double dip recessionWhen an economy goes into recession twice without a full recovery in between
  20. 20Economic cycleVariations in the annual rate of growth of an economy over time
  21. 21Economic growthAn increase in the real value of goods and services produced in a country or area as measured by the annual % change in real national output. Also a long-run increase in the country's productive capacity
  22. 22Economic shocksUnpredictable events such as volatile prices for oil, gas and foodstuffs
  23. 23Economic stabilityWhen growth, prices and unemployment do not change much from year to year
  24. 24Economically activeThose who are unemployed and actively seeking work
  25. 25Economically inactiveThose who are of working age but a neither in work nor actively seeking work
  26. 26Exchange rateThe rate at which one currency can be exchanged for another
  27. 27Expansionary Monetary policyA relaxation of monetary policy means an attempt to use an expansionary monetary policy to boost AD, output and jobs - includes lower IRs
  28. 28ExpectationsHow we expect the future to unfold
  29. 29Fiscal austerity or fiscal tighteningFiscal austerity refers to decisions by the government to reduce the amount of government borrowing (e.g. cut the size of a fiscal deficit) over a period of years
  30. 30Fiscal deficitWhen government expenditure is higher than the revenue from tax receipts
  31. 31Fiscal policyA government's policy regarding taxation and public spending. It can be loose (with emphasis on increased spending and lower tax revenue to boost economic activity, with the acceptance of a wider fiscal deficit) or tight (with the emphasis on cutting spending and boosting tax revenue, resulting in a slower economy.
  32. 32Fiscal stabilityMany governments seek to maintain a degree of balance between tax revenues and public sector spending. A balanced budget is one in which spending equals revenue.
  33. 33Fiscal stimulusGovernment measures, normally involved increased public spending and lower direct and/or indirect taxation, aimed at giving a positive jolt to economic activity
  34. 34Foreign Direct Investment (FDI)FDI is investment from one country into another (normally by companies rather than governments) that involves establishing operations or acquiring tangible assets, including stakes in other businesses.
  35. 35Gross Domestic Product (GDP)Total value of output in the UK and is used to measure change in economic activity
  36. 36Gini CoefficientA measure of the extent to which groups of households, from the bottom of the income distribution upwards, receive less than an equal share of income.
  37. 37Gross National Income (GNI)Income generated from the resources owned by inhabitants and businesses of a given country
  38. 38Government debtThe total stock of unpaid debt issued by government. A government will normally borrow money by issuing bonds or other securities.
  39. 39Gross Domestic Product per capitaNational income per head of population, a baseline measure of living standards.
  40. 40Human capitalInvestment in education and training to increase the quality of the labour force and to make people more flexible in a changing world of work.
  41. 41Human Development IndexAn index to assess comparative levels of development in countries, quantified in terms of literacy, life expectancy and purchasing power.
  42. 42HysteresisWhen a sustained period of low AD can lead to permanent damage to the supply of the economy
  43. 43Immobility of labourBarriers to the movement of people between areas and between jobs
  44. 44InflationA sustained increase in the general price level for goods and services
  45. 45Inflation expectationsThe rate of increase of consumer prices expected by consumers. Expectations can influence spending and saving decisions.
  46. 46Inflation target2%
  47. 47Inflationary pressuresThe demand and supply-side pressures that can cause a rise in the general price level. Demand-pull inflationary pressure is greatest when actual GDP exceeds potential GDP causing a positive output gap. Cost-push inflationary pressure can arise from increases in unit wage costs, rising import prices and an increases in raw materials.
  48. 48InvestmentSpending on capital goods including plants, machinery and infrastructure
  49. 49Keynesian economicsThe belief that the state can directly stimulate demand in a stagnating economy.
  50. 50Keynesian unemploymentUnemployment caused by a lack of AD in the economy - a deficiency of private sector spending causes output and employment to contract
  51. 51Labour sheddingCuts back in employment often seen in a slowdown or a recession
  52. 52Labour shortagesWhen businesses find it difficult to recruit the workers they need.
  53. 53Labour supplyThe number of people able, available and willing to work at prevailing wage rates
  54. 54Lagging indicatorsIndicators which tend to follow economic cycles e.g. unemployment
  55. 55Leading indicatorsIndicators which predict future economic trends e.g. consumer confidence
  56. 56Macroeconomic performanceThe overall performance in terms of output, prices, jobs, trade and living standards.
  57. 57Propensity to consumeThe proportion of any change in income that is spent rather than saved
  58. 58Propensity to saveThe proportion of any change in income that is saved rather than spent
  59. 59Marginal rate of taxThe rate of tax on the next unit (£1) of income earned.
  60. 60Monetary Policy Committee (MPC)9 people from the B of E meet up every month to discuss interest rates
  61. 61Monetary stimulusChanges in monetary policy designed to increase the aggregate demand including lower policy interest rates and measures to increase the supply of credit.
  62. 62Money supplyThe entire quantity of a country's commercial bills, coins, loans and credit.
  63. 63Multiplier effectIf there is an initial injection into the economy, then the final increase in AD and real GDP will be greater
  64. 64National DebtA government's total outstanding debt - effectively what the government still owes from the budget deficits accumulated over time.
  65. 65Negative interest ratesAn interest rate that is below zero. For real interest rates, this can occur when the inflation rate is higher than nominal interest rates
  66. 66Net investmentGross investment minus an estimate for capital depreciation
  67. 67Net inward migrationWhen the number of migrants coming into a country is greater than those leaving.
  68. 68Net tradeThe balance between the value of exports and imports
  69. 69Nominal GDPMonetary value of all goods and services produced expressed at current prices.
  70. 70Nominal wageThe annual growth of wages unadjusted for inflation
  71. 71Non-inflationary growthSustained growth of real national output whilst maintaining price stability
  72. 72Output gapDifference between actual and potential national output. A negative output gap means that an economy has a large margin of spare production capacity
  73. 73Output measure GDPThe value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy etc.
  74. 74Paradox of ThriftIf people save more during a recession, it will reduce consumption and thus AD will fall, impeding economic growth and, eventually, lowering the general level of savings.
  75. 75PeakThe high point of the economic cycle beyond which a recession starts.
  76. 76Per capita incomesIncome per head of the population - a measure of living standards
  77. 77Price stabilityWhen there is low inflation and the price changes that do occur have little impact on day-to-day decisions of people.
  78. 78ProductivityA measure of efficiency e.g. output per person employed or output per person-hour
  79. 79Propensity to importProportion of any change in income that is spent on overseas products
  80. 80Propensity to saveProportion of any change in income that is saved rather than spent
  81. 81Purchasing powerThe buying power of a unit of currency. It is inversely related to the rate of inflation.
  82. 82Quantitive easingThe introduction of new money into the national supply by a central bank.
  83. 83Real disposable incomeIncome after taxes and welfare benefits, adjusted for the effects of inflation
  84. 84Real incomeNominal income adjusted for price changes, expressed at constant prices.
  85. 85Real interest rateNominal rate of interest adjusted for inflation
  86. 86Real wageNominal wage adjusted for the effects of inflation
  87. 87RecessionA period of at least 6 months when an economy suffers a fall in output. Or a broadly-based contraction in output, employment, investment and confidence.
  88. 88RecoveryA phase of the economic cycle, after a recession/depression, during which real GDP starts to increase and unemployment begins to fall
  89. 89RemittancesSending money to people in another country,
  90. 90SlowdownA fall in the rate of growth of an economy but not a full-scale recession
  91. 91SlumpA sustained decrease in real GDP and a persistent rise in unemployment
  92. 92Spare capacityWhen a business is not making full use of its available capacity - theres are spare factors of production including land, labour and capital. When an economy has plenty of spare capacity, SRAS is elastic.
  93. 93StagflationA combination of slow growth and rising inflation.
  94. 94Structural budget deficitThe size of a fiscal (budget) deficit adjusted to take account of the effects of changes in the economic cycle.
  95. 95Structural trade deficitA trade deficit that arises due to supply-side weaknesses rather than a change in GDP or currency - caused by poor competitiveness
  96. 96Structural unemploymentUnemployment that results from the decline in industry, which leaves people unemployed because they do not have the skills needed by industries that are growing.
  97. 97Sustainable growthGrowth that meets the needs of the present without compromising the ability of future generations to meet their own needs. Growth that can continue without damage to the environment, or the exhaustion of non renewable resources.
  98. 98TargetA target is an objective of government policy e.g. low inflation
  99. 99Time lagsThe time it takes for one change e.g a change in interest rates to affect other variables
  100. 100Trade deficitWhen a country has imports a greater value of goods and services than it exports. A trade deficit as a net withdrawal from the circular flow of income.
  101. 101Trade-offA trade-off implies that choices have to be made between different objectives of economic policy for example a trade-off between economic growth and inflation
  102. 102Transmission mechanismHow a change in interest rates affects the various sectors of the economy
  103. 103Trend growthLong run average growth rate - mainly determined by changes in the stock of available factor inputs and slo improvements in productivity. Trend growth is represent by a rightward shift in LRAS
  104. 104Twin DeficitRefer to a situation where an economy is running both a fiscal deficit and also a deficit on the current of the balance of payments.
  105. 105Under-employmentWorkers are underemployed when they are willing to supply more hours of work than their employers are prepared to offer.
  106. 106Unemployment trapWhen the prospect of unemployment benefits dissuades those without work from taking a new job - creates a disincentives problem
  107. 107Unit wage costsLabour costs per unit of output
  108. 108Wage price spiralWhiter workers big for higher wages because they have seen their real income eroded by rising prices leading to more cost push inflation.
  109. 109Wealth effectThe supposed link between changes in wealth and household spending.

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Macroeconomic key term flashcards
Criado por
Hannah Nad
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