What are the four main macroeconomic indicators?
- Rate of economic growth
- Rate of inflation
- Level of unemployment
- State of the balance of payments
What is GDP
the total value of all goods and services produced within a country in a given period of time
What is the rate of economic growth linked to
the speed at which national output grows
Define a boom
long periods of high economic growth rate
What is a recession
When there is negative economic growth for two consecutive quarters.
How do you measure the rate of economic growth (%)
Change in GDP(£billions) x 100
Original GDP (£billions)
How do you calculate GDP per capita
What is GNI (Gross National Income)
GNI is GDP plus net income from abroad in the form of foreign assets.
What is GNP (Gross National Product)
What are the two ways to define inflation
What are the two ways of measuring inflation?
Explain how RPI is calculated
What does CPI not take into account?
- Mortgage interest payments
- Council tax
What are two micro advantages to CPI and RPI
- Employers and trade unions use them in wage negotiations
- Governments base state pension values and welfare benefits off this figure.
What is a macro disadvantage to CPI and RPI
Higher inflation means the value of the £ is less and so UK goods become less price competitive so exports will fall.
What are the two ways of defining unemployment
- the number of people who are looking for a job but cant find one
- the number of people out of work as a percentage of the labour force
What are the two ways of measuring unemployment
What is the claiment count
it counts the number of people claiming unemployment related
