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Hint
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Answer
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Rapid inflation; up to 50% per month
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Hyperinflation
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Little incentive for workers with low income to earn extra income as it would result in higher tax and lower benefits
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Poverty Trap
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Inflation caused by excess demand in the economy
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Demand pull
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Deflation caused by a fall in AD
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Malign
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A fall in the rate of inflation
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Disinflation
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Prolonged downturn in the economy where a nations GDP falls by at least 10%
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Depression
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Type of UE: People refusing jobs
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Voluntary
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Type of UE: Variations in the level of employment due to seasonality of activity
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Seasonal
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A concept that describes recessions that lead to a permanent downward shift in the trend growth of GDP
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Hysteresis
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A period when the rate of real GDP is faster and higher than the long term trend
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Boom
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A concept that describes how recessionary periods can lead to opportunity and development
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Creative destruction
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Measures the value of all goods and services produced at the market price level of the day
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Nominal GDP
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Inflation caused by increases in the costs of production
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Cost push
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Type of UE: Generated by a fall in demand
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Cyclical
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Deflation caused by a rise in AS
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Benign
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Measures the value of all goods and services taking into account the rise in the general price level
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Real GDP
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Short term fluctuations of National Output around its long term trend
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Business cycle
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Records all financial transactions made between consumers, businesses and the government in one country with another nation
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Balance of payments
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A period of at least 6 months when a country suffers a fall in output
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Recession
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Trade in services, transfers of income and other payments or reciepts
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Invisible
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When the level of actual GDP > trend growth GDP
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Positive output gap
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Type of UE: A mismatch of skills
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Structural
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People who are able, available, willing and actively searching for work
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Unemployment
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Type of UE: National Minimum Wage is too high
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Real Wage
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Those who are underemployed or willing to take a job if offered, but not actively looking for one
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Hidden Unemployment
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Sustained fall in general price level
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Deflation
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A weakening of the rate of growth; GDP is still rising but increasing at a slower rate
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Slowdown
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The total value of goods and services produced by a country's residents at home or abroad
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GNI
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Type of UE: Temporary UE when people are between jobs
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Frictional
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The ease and ability of labour to move to places with high demand for labour
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Geographical mobility
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The more qualified, the more transferable skills one has
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Occupational mobility
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A measure of the price level of a basket of goods and services
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CPI
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The purchasing power of one currency in one economy compared to the purchasing power of the same currency in a different economy
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Purchasing Power Parity
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A phase after a recession during which rGDP starts to increase and unemployment starts to fall
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Recovery
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When the level of actual GDP < trend growth GDP
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Negative output gap
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Trade in goods
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Visible
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JSA
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Job Seekers Allowance
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