Here are key terms in introductory macroeconomics that you can revise using Quizlet. We've added our own key term glossary too.
Animal spirits: State of confidence or pessimism held by consumers and businesses
Budget deficit: When government spending exceeds the value of tax revenues in a given period
Deflation: A decline in the general price level in an economy, signified by a negative inflation rate
Economic cycle: Short-run fluctuations of real GDP around a long-term trend
Exchange rate: The external value of one currency in terms of a second currency.
Exports: Goods or services sold to agents in other countries
Full employment: When everyone willing and able to work at the current wage rate is in work
GDP: The total value of goods and services produced..
Government (National) Debt: The total stock of unpaid debt issued by a government
Gross National Income (GNI): GDP plus net income from abroad.
Human Development Index: Measure of development progress including income, education and health attainment
Imports: Purchases of foreign goods and services
Inflation: Annual % change in consumer prices
Lagging indicators: Indicators which tend to follow economic cycles such as unemployment.
Leading indicators: Indicators which predict future economic trends such as consumer and business confidence
Monetary policy: Policy to affect the supply or cost of money (rate of interest).
National happiness: Societal and personal well-being looking beyond what an economy produces
Net trade: Value of exports minus the value of imports
Nominal GDP: Monetary value of all goods and services produced expressed at current prices
Output gap: A measure of spare capacity, the difference between actual and potential GDP
Per capita incomes: Income per head of the population - a measure of average living standards
Productivity: Key measure of efficiency - GDP per worker employed or GDP per hour worked
Purchasing power: The buying power of a unit of currency. It is inversely related to the rate of inflation.
Real disposable income: Income after taxes and welfare benefits, adjusted for the effects of inflation
Savings ratio: Ratio of personal saving to disposable income.
Supply-side policies: Policies that increase a country's productive capacity and competitiveness
Unemployment: % of the labour force out of work and actively seeking a job
Wealth: The value of a stock of assets such as housing, personal pensions and savings
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