Measuring Economic Performance
This measure is the total market value of all goods and services produced over a period of time.
What is GDP? pg 137
This is defined as a continuous general rise in prices across a country.
What is inflation?137
This refers to people without a job who are actively seeking work and available to start within two weeks.
What is unemployment (ILO definition)?156
This is the value of exports minus the value of imports.
What is the balance of trade?163
This type of cost includes the impact of unemployment on households and dependents.
What are social or personal costs?176
This occurs when an economy experiences negative economic growth for at least two consecutive quarters.
What is a recession?137
This type of inflation occurs when aggregate demand rises without an increase in supply.
What is demand-pull inflation?181
This type of unemployment occurs when people are temporarily between jobs.
What is frictional unemployment?178
This occurs when the value of exports is greater than the value of imports.
What is a trade surplus?164
This negative impact on firms may occur if inflation reduces international price competitiveness.
What is loss of competitiveness?184
This version of GDP has been adjusted to remove the effects of inflation.
What is real GDP?137
This type of inflation is caused by rising production costs.
What is cost-push inflation?182
The ILO unemployment rate is calculated using this type of survey.
What is the Labour Force Survey (LFS)?157
This account records payments for the trade of goods and services internationally.
What is the current account?164
This cost of inflation refers to time spent managing money to avoid its loss of value.
What are shoe-leather costs?184
This measure divides national income by the size of the population to compare living standards.
What is GDP per capita?143
These are the two key problems caused by deflation.
What are falling prices and declining asset values?185
This type of unemployment happens when real wages are set above the market-clearing level.
What is real wage (classical) unemployment?172
This term refers to economies becoming more interconnected globally through trade, labour and technology.
What is globalisation (or global interconnectedness)?163
One major limitation of GDP is that it does not account for this environmental impact.
What are externalities (such as pollution)?145
This type of payment, such as welfare benefits, is excluded from national income as it does not involve production.
What are transfer payments?143
This economic phenomenon occurs when inflation is high during a recession.
What is stagflation?154
This formula: (Unemployed / Economically active population) × 100 represents which rate?
What is the ILO unemployment rate?158
This method compares living standards by looking at the real purchasing power of money instead of exchange rates.
What is Purchasing Power Parity (PPP)?152
This is the process of adjusting wages or interest rates in line with inflation.
What is indexation?160