ECONOMICS 11B (ECO20B) Semester 1 Supplement - Macroeconomic Objectives

Flashcards covering key macroeconomic objectives and concepts.

Economic Growth

Sustained, recurring annual increases in real GDP per capita or at least in real GDP Y over time.

Nominal GDP

Value of total output measured in terms of the current prices of goods and services.

Real GDP

Value of total output expressed in the prices of a base year; also called GDP at constant prices.

Unemployment Rate

Expressing the total number of unemployed persons as a percentage of the total labour force.

Inflation

A sustained increase in the general or average price level.

Consumer Price Index (CPI)

Measures the cost of a predetermined basket of consumer goods.

Balance of Payments (BoP)

Accounting record of a country’s involvement in international trade and international capital flows.

Current Account

Records the international payments relating to imports and exports.

Financial Account

Records the flow of capital into and out of the country.

Foreign Reserves

Critically important since they are essential in paying for imports.

Gini Coefficient

A measure of inequality.

Lorenz Curve

A measure of inequality.

Equity

About fairness and justice.

Development

A decisive, comprehensive and integrated process that expands the range of choices that people have and improves their standards of living.

Human Development

A process of enlarging people’s choices, including a long and healthy life, education, and a decent standard of living.

Economic Growth

Sustained, recurring annual increases in real GDP.

Economic Development

Improvement in people’s standard of living, considering human and social development.

Key HDI Indicators

Life expectancy, knowledge, and income.