Econ Macro Words test 1

Balance of payments

important economic indicator that measures a country’s transactions with the rest of the world

Current Account

the current account records payments for trade in goods and services + net flows of primary and secondary income
Net balance of trade in goods + Net balance of trade in services + Net primary income + Net secondary income

Deflation

occurs when prices actually fall

general price level is falling and value of money increasing

Disinflation

when there has been a fall in rate of inflation

general price level is increasing at slow rate

Employment

the number of people of working age who are in a job

Fiscal drag

economic phenomenon where inflation or rising nominal wages push taxpayers into higher tax brackets or increase their tax burden when tax thresholds are left unchanged or frozen

GDP (Gross Domestic Product)

the total value of goods and services produced in an economy in a year

GNP (Gross National Product)

the total market value of all final goods and services produced by a country’s owned factors of production, regardless of whether those factors are located inside or outside the domestic border

Inflation

a sustained increase in the general price level leading to a fall in the purchasing power or value of money

Long-term unemployment

refers to the people who have been unemployed for 12 months or more

the longer someone is unemployed, the harder they find it to get another paid job

Nominal Wealth

the total monetary value of an individual’s or nation’s assets measures in current prices without any adjustment for inflation

Primary Income

the return that institutional units or individuals receive for contributing to the production process or for providing factors of production

Purchasing Power

the quanitity of goods or services that a single unit of money can buy.

shows the real-world value of a currency in a market

Purchasing Power Parity (PPP)

the idea that items should cost the same in different countries, based on the exchange rate at the time

Real National Income

the total income earned in a country over a period, adjusted for inflation to reflect the actual purchasing power of goods and services

Remittance

a non-commercial transfer of money or goods sent by a migrant worker, expat, or citizen living abroad to family members, relatives, or friends in their home country

Secondary Income

current transfers of money, goods, or services between residents and non-residents where there is no direct counterpart or return item of economic value provided in exchange

Sustainability

growth that meets the needs of the current generation without jeopardising the fulfilment of needs for future generations

Trade Union

an organized association of workers that acts collectively to protect and advance their members' economic and working interests

Unemployment

to be accounted as unemployed, someone must be of working age, willing and able to work and actively be seeking work but cannot find a job

Underemployment

when a certain individual is in a job that underpins their skill set or qualifications