WorksheetsChapter 2 Macroeconomics Definitions
Total questions: 34
Worksheet time: 34mins
A record of the money flows into and out of a country in a year
Balance of payments
Net exports
Current account
Capital and financial accounts
A small account on the balance of payments that includes debt forgiveness, patents, copyrights, franchises, leases and land ownership
Balance of payments
Financial account
Current account
Capital account
Trade in goods, trade in services, income flows and transfers on the balance of payments
Balance of payments
Financial account
Current account
Capital account
Direct capital investment (FDI), financial investment (portfolio investment) and banking flows and reserves
Balance of payments
Financial account
Current account
Capital account
(a) count: A monthly count of people claiming unemployment related benefits. JSA in the UK
(a) : A measure of the changes in the price of a representative basket of consumer goods and services. Differs from RPI in methodology and coverage
A situation in which the average level of prices is falling (negative inflation)
Inflation
Deflation
Disinflation
Rising inflation
A decrease in the rate of inflation
Inflation
Deflation
Disinflation
Rising inflation
Occurs when a country experiences very high and usually accelerating rates of inflation, rapidly eroding the real value of the currency
Inflation
Deflation
Disinflation
Hyperinflation
A sustained rise in the general price level
Inflation
Deflation
Disinflation
Hyperinflation
Economic (a) : A process that leads to an improvement in people’s economic well-being and an increase in the quality of life factors, e.g.
_________________ ______________: In the short run, an increase in real GDP. In the long run, an increase in productive capacity
(a)
People aged 16-64 who are in employment or unemployed.
Economically active
Economically inactive
Potential labour force
Unemployed
People aged 16-64 who are in employment or unemployed.
Actual labour force
Economically inactive
Potential labour force
Unemployed
People without a job who have not actively sought work in the last four weeks and/or are not available to start work in the next two weeks
Actual labour force
Economically inactive
Potential labour force
Unemployed
Those in employment plus the unemployed. Both groups are economically active
Actual labour force
Economically inactive
Potential labour force
Unemployed
(a) : The value of output produced in a country in a year
The total value of output produced domestically in a country in a year divided by the population
GDP per capita
Average income
GDP per head
All answers
GDP per capita ( (a) ): Per capita GDP (the total value of output produced in a country in a year divided by population) adjusted to an exchange rate which equalises the price of a basket of identical traded goods and services in two different countries
____ : GDP plus factor incomes earned by foreign residents, minus income earned in the domestic economy by non-residents
GDP
GDP per capita
GNI
GPI
Profit, interest and dividends on investments abroad / sent abroad
Income
Transfers
Net exports
Current account
Money sent and received between workers in the UK and abroad
Income
Transfers
Net exports
Current account
An ________ _____________ is an economic data figure reflecting price or quantity compared with a standard or base value
(a)
Uses the ILO definition of unemployment. Survey of 60,000 people done 4 times per year
(a)
An increase in the productive capacity in the economy, i.e. An increase in LRAS
Economic growth
Short-run economic growth (AD)
Long-run (potential) growth (LRAS)
Demand-side policy
An increase in AD
Economic growth
Short-run economic growth
Long-run (potential) growth
Demand-side policy
A balancing item that takes account of any discrepancies that arise in calculating the balance of payments
Current account
Net errors and omissions
Capital account
Financial account
Real GDP / (100 / price index)
Nominal GDP formula
Price index formula
Real GDP formula
Hair growth formula
Nominal GDP x (100 / price index)
Nominal GDP formula
Price index formula
Real GDP formula
Hair growth formula
100 x (nominal GDP / real GDP)
Nominal GDP formula
Price index formula
Real GDP formula
Hair growth formula
The exchange rate which equalises the price of a basket of identical traded goods and services in two different countries
(a)
The country's output measured in constant prices and so adjusted for inflation
Real GDP formula
Nominal GDP
Nominal GDP formula
Real GDP
A measure of inflation that is used for adjusting pensions and other benefits to take account of changes in inflation and frequently used in wage negotiations. Differs from CPI in methodology and coverage
(a)
Unit labour costs: The total cost of (a) per unit of output
