UK Economic Performance and Policies Overview

Total GDP

Monetary value of all goods and services produced in a country during a specific period of time

GDP per Capita

Average output per person in an economy.

Volume of GDP

GDP adjusted for inflation. The size of basket goods and real level of GDP.

Value of GDP

Monetary value of GDP at current prices.

Gross National Product (GNP)

Market value of products by citizens, domestically or abroad.

Gross National Income (GNI)

Total income from domestic and overseas production.

Economic Growth

Increase in GDP value indicating national output rise.

Gross Domestic Product (GDP)

Total value of goods and services produced.

Real GDP

value of GDP adjusted for inflation effects.

Nominal GDP

value of GDP not adjusted for inflation.

Purchasing Power Parity (PPP)

theory of how to estimate the exchange rate so exchange rate between countries is equivalent according to each country's purchasing power

Limitations of GDP

does not show distribution of income
may need to be recalculated for international price differences
large hidden economies
does not indicate welfare

Hidden Economies

Unreported economic activities, like the black market.

National Well-being

Comprehensive measure of societal quality of life.

Life Satisfaction

Individual assessment of happiness and contentment.

Happiness Index

Measure of national well-being beyond economic factors.

UN Happiness Report

Evaluates factors affecting national happiness levels.

Health and Life Expectancy

Key indicators of population well-being.

Perceived Freedom

Individual's sense of autonomy in life choices.

Freedom from Corruption

Absence of corrupt practices in governance.

Generosity

Willingness to give and support others.

UK Measuring National Wellbeing Report

Surveys assessing life satisfaction and happiness.

GDP per capita

Average economic output per person in a country.

Life satisfaction score

Measure of individual happiness and contentment.

Inflation

Sustained rise in general price level over time.

Purchasing power

Value of money in terms of goods and services.

Deflation

Decrease in the average price level in the economy.

Disinflation

Slowing rate of inflation despite rising prices.

Consumer Prices Index (CPI)

Measures household purchasing power and price changes.

Family Expenditure Survey

Survey tracking consumer spending habits.

Weighted basket of goods

Collection of items reflecting consumer spending patterns.

Price stability

Goal of maintaining low and stable inflation rates.

Retail Price Index (RPI)

Inflation measure including housing costs.

Demand pull inflation

Inflation caused by increasing aggregate demand.

Cost push inflation

Inflation resulting from rising production costs.

Fiscal stimulus

Government actions to increase economic activity.

Exchange rate depreciation

Decrease in currency value affecting import prices.

Interest rates

Cost of borrowing money, influencing consumer spending.

Expectations of inflation

Consumer beliefs about future price increases.

Indirect taxes

Taxes on goods that increase consumer prices.

Raw materials cost

Expenses for basic materials used in production.

Labour costs

Expenses associated with employing workers.

Historical comparisons

Evaluating economic data over different time periods.

Demographic spending patterns

Variations in spending based on population characteristics.

CPI limitations

CPI may not reflect all household spending accurately.

Monopoly

Market dominance allowing price exploitation of consumers.

Money Supply Growth

Increase in money circulation affecting inflation rates.

Hyperinflation

Extreme inflation causing uncontrollable price increases.

Inflation Rate

Speed at which prices rise, affecting purchasing power.

Regressive Effect

Impact of inflation disproportionately affecting low-income individuals.

Real Value of Debt

Debt's worth decreases when inflation rises.

Interest Rates

Cost of borrowing money, influenced by inflation.

Investment Attractiveness

Low interest rates encourage borrowing over saving.

Business Confidence

Firm's assurance in economic stability affecting investment.

State Pension Adjustment

Government increases pension value due to rising costs.

Disposable Income

Income available after taxes and essential expenses.

Redundancies

Job losses due to firms cutting costs.

Microeconomic Impact

Effects of inflation on individuals and firms.

Macroeconomic Impact

Overall inflation figure affecting the economy.

Claimant Count

Measure of unemployment based on benefit claims.

Job Seeker's Allowance (JSA)

Benefit for those actively looking for work.

International Labour Organisation (ILO)

Agency providing standardized unemployment measures.

Labour Force Survey (LFS)

Survey assessing employment status and availability.

Underemployment

Workers not fully utilizing their skills or hours.

Standard of Living

Quality of life based on income and employment.

Psychological Consequences

Mental health effects from job loss.

Supply of Labour

Availability of workers affecting wage levels.

Unemployment

State of being without a job despite seeking work.

Disposable Income

Income available for spending after taxes.

Consumer Spending

Total expenditure by consumers on goods/services.

Inferior Goods

Goods whose demand increases when income decreases.

JSA

Jobseeker's Allowance, government support for unemployed.

Opportunity Cost

Value of the next best alternative foregone.

Economically Inactive

Individuals not actively seeking employment.

Structural Unemployment

Long-term job loss due to industry decline.

Geographical Immobility

Difficulty moving to areas with job availability.

Occupational Immobility

Inability to transfer skills to new jobs.

Globalisation

Increased global trade affecting local job markets.

Frictional Unemployment

Temporary unemployment during job transitions.

Seasonal Unemployment

Job loss occurring at specific times of year.

Cyclical Unemployment

Unemployment due to economic downturns.

Demand Deficiency

Insufficient demand leading to job losses.

Real Wage Inflexibility

Wages above equilibrium causing unemployment.

Negative Externalities

Unintended adverse effects on society from unemployment.

Labour Force

Total number of people available for work.

Productive Potential

Maximum output an economy can produce.

Wage Fall

Decrease in wages due to increased labor supply.

Skills Loss

Deterioration of skills due to unemployment.

Carers

Individuals providing unpaid care for dependents.

Discouraged Workers

Individuals who have stopped looking for jobs.

Demand Shift

Movement of demand curve leftward due to reduced spending.

Unemployment

Joblessness caused by insufficient demand for labor.

Classical Economists

Advocates of flexible wages to reduce unemployment.

Flexible Wages

Wages that can adjust based on market conditions.

Trade Union Power

Influence of unions on wage levels and employment.

National Minimum Wage (NMW)

Legal minimum wage employers can pay workers.

Consumer Spending

Expenditure by households on goods and services.

Economic Growth

Increase in a country's output of goods and services.

Migration Impact

Effect of migrants on labor supply and skills.

High-Quality Skills

Advanced abilities brought by migrants to workforce.