GCSE Economics Topics 3.1, 3.2, 3.3 and 3.4

economic growth

the growth in GDP over time

GDP

the total value added of all the goods and services produced in a country in a year

GDP per capita

GDP divided by the population and also average income of the population

Boom

a period of high economics activity and high levels of employment

recession

a period when GDP falls for two or more consecutive quarters

slowdown

a weakening of the rate of growth, real GDP is still rising but increasing at a slower rate

recovery

a phase of the cycle after a recession or depression, during which real GDP starts to increase and unemployment begins to fall

inflation

a sustained rise in the general price level over time

general price level

a measure of overall prices of goods and services in the economy at a particular point in time

Price stability

when the general price level stays constant over time, or grows at an acceptabbly low rate

rate of inflation

the percentage rise in the general price level over time

employment

the use of labour in the economy to produce goods and services

unemployment

the number of people willing and able to work at the current wage rate but are unable to find employment

structural unemployment

the long term unemployment caused by the changing structure of the UK economy

cyclical unemployment

happens when there is insufficient demand in the economy for all workers to get a job

frictional unemployment

unemployment associated with people changing jobs

seasonal unemployment

unemployment due to changes in demand for products across different seasons of the year

distribution of income

how income is shared in households

income

the reward for the service provided

wealth

market value of all the assets owned by a person

absolute poverty

when a household does not have sufficient income to sustain even a basical acceptable standard of living

relative poverty

a level of household income that is considerably lower than the median level of income within a country

persistent poverty

a household which is below the poverty threshold line for 2 of the 3 past years