the measurement of macroeconomic performance

availability of credit

funds available for firms to borrow

claimant count

a method of measuring unemployment which counts the number of people who are claiming unemployment related benefits

consumer price index (CPI)

a measure of inflation by comparing the costs of a basket of goods

credit crunch

occurs when there is a low availability of credit in an economy

economic shock

unexpected events which occur and could be supply or demand side shocks

exchange rates

the price of a currency measured in terms of another currency

exports

goods or service that are sold to other ocuntries

full employment

when all those who are willing and able to work are working

imports

goods and services which are bought from other countries

index numbers

numbers which allow comparison over time. base number is 100.

inflation rate target

the government sets a target that the bank of England aims to achieve which is currently ±2%

labour force survey

a measure of unemployment in which a survey is done which records information about personal employment

liquidity

the ease in which an asset can be turned into cash without loss or delay

marginal propensity to consume

the proportion of an increase of disposable income which is spent on consumer goods

marginal propensity to save

the proportion of disposable income which is saved

national income

the value of all goods an services in an economy over a period of time

performance indicators

they provide information on how good or bad a policy is doing

policy objective

a target that policy makers aim to hit

price index

an index number which shows the extent that prices have changed in comparison to a base year

retail price index

a measure of inflation which includes hosehold expenses

wealth

a stock of assets