Macroeconomic Measures and Vocabulary

Vocabulary practice flashcards defining key economic indicators, measurements, and terminology from the lecture notes.

Claimant count

A method of measuring unemployment by counting all of those who claim the Jobseekers Allowance and other unemployment related benefits.

Consumer prices index (CPI)

Official measure used to calculate the rate of consumer price inflation, using a basket of common goods.

Gross National Income (GNI)

Sum of value added by all producers who reside in a nation, plus product taxes not included in the value of output, plus receipts of primary income from abroad.

Gross National Product (GNP)

Market value of all products produced per annum by the labour and property supplied by the citizens of one country.

Index numbers

Numbers allowing accurate comparisons over time to be made. The base year value is typically $100$.

Inflation rate target

The CPI inflation rate target set by the government, which the Bank of England attempts to achieve; currently $2\%$.

Labour Force Survey

A quarterly survey of UK households, recording information on the personal employment circumstances of the respondents.

Marginal propensity to consume (MPC)

The proportion of an increase in disposable income that is spent on consumer goods.

Price index

An index number showing the extent to which a set of prices has changed in comparison to the prices in the base year.

Purchasing Power Parity (PPP)

Adjustments of exchange rates to reflect the actual purchasing power of a currency.

Weighting

When certain data items in a set are assigned a higher or lower importance than other data items in the set.