Edexcel Economics 4. The UK Economy - Performance Measures

Description

Term

Where tax receipts are not sufficient to cover government spending therefore requiring the government to borrow the difference

A period of perhaps ten or twenty+ years in macroeconomic terms

Change in consumption ÷ change in income =

That which is not counted in government spending as it would be counted twice due to acting as income for the recipients which they go on to spend on consumption

Those who have been unable to find employment and have thus given up looking

Government expenditure not affected by the level of real income in the economy as it is bound by existing systems and commitments such as the state pension

The prices of a country's exported goods and services compared to other countries

The principal measure of inflation for most countries including the UK, measured according to the prices of over 700 representative consumer items, updated according to changes in shopping habits every 12 months

A type of frictional unemployment consisting of those who do not accept the first job they are offered but instead search around for a more suitable one

That an example of which is the interest that could have been earned from past profits by depositing the money in banks or lending it to other firms

Description

Term

A rise in the general price level over time and thus a fall in the purchasing power of money, with there being an imbalance between the quantity of goods and services and the quantity of money

A United Nations agency whose role is to set international labour standards

Where people are working below their capacity (hours) or capability (qualifications)

The price of goods and services within an economy

Where a person who would like to accept a job at the going wage rate is unable to find employment

That which is the principal factor in determining the affect of inflation on firms

The value of the total assets held by a household, firm, &c.

An index such as the Consumer Price Index which assigns a weight to each category of product (i.e. food, energy, &c.) according to the proportion of total expenditure spent on each one

Where the longer one is unemployed the more detached they become from their skills thus further harming their ability to find a job

That, which in the short term, is addressed by finding capital funds to balance it such as via borrowing foreign currencies