Macroeconomic abbreviations

What is GDP

• gross domestic product

• The total value of all goods and services produced by an economy in a given year

What is GDP per capita

A country’s total economic output divided by its mid year population providing an average economic value per person

What is GNP

• gross national product

• It is the total value of goods and services produced by a countries residence and companies regardless of their geographic location e.g money made in other countries

What is GNI

• gross national income

• Total income earned by a country’s residents and businesses regardless of what the income earned

What is PPP

• purchasing power parity

• It calculates the relative purchasing powerof different currencies

  • It shows the number of units of a country's currency that are required to buy the same baskets of products in the local economy, as $1 would buy of the same products in the USA or another country 

What is CPI

• consumer prices index

• A measure that analyzes the average change over time in the prices paid by consumers for a basket of goods and services. It is used as an indicator of inflation.

what is RPI

• retail prices index

• A measure of the average change over time in the prices of a basket of retail goods and services, including housing costs. It is used to gauge inflation and influences economic policies.

what is Basket of goods

A selection of goods and services used to measure price changes and inflation for economic analysis.

what is real

economic value adjusted for inflation - so actual income but expressed in terms of inflation

what is nominal

economic value not adjusted for inflation, representing actual value of income

what is labour force

all the members of a particular organisation or country who are able to work collectively 

what is labour force

is a study of the employment circumstances of the UK population it is the target household study in the UK and provides the official measured of employment and unemployment

What is claimant Count

the number of people claiming job seeker’s allowances and people claiming universal credit who are required to seek work

what is current account

an account at a bank or building society from which money may be withdrawn without notice, typically an active account catering for catering for frequent deposits and withdrawals by cheque

what is balance of trade in goods

the balance of trade is the difference between a country’s exports and imports of goods. A numerically positive balance of trade aka trade surplus - occurs when a country exports more goods than it imports

what is balance of trade in services 

difference between the monetary value of a nations exports and imports of goofs over a certain time period

what is net income

total profit of an individual or business after all expenses deductions and taxes have been paid

what is transfer payments

a payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy.