Macroeconomics-
1) The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. (Investopedia.com)
2) The branch of economics that studies economic aggregates (grand totals) e.g. the overall level of prices, output and employment in the economy. (Economics John Slowman)
3) The study of economy-wide phenomena, including inflation, unemployment and economic growth. (Economics N. Gregory Mankiw, Mark P. Taylor)
4) The branch of economics dealing with the broad and general aspects of an economy, as the relationship between the incomeand investments of a country as a whole. (Dictionary.com)
The study of aggregate economies, including inflation, unemployment and economic growth.
The study of aggregate economies, including inflation, unemployment and economic growth.
Unemployment-
1) Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. (Investopedia.com)
2) The number of people who are actively looking for work but are currently without a job. (note: that there is much debate as to who should officially be counted as unemployed) (Economics John Slowman)
3) Those without a job but who are seeking work at current wage rates. (AQA Economics)
Generally displayed in percent of population, the amount of people who are without a job at a certain time and are seeking one.
Inflation-
1) The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. (Investopedia.com)
2) is a continual increase in prices throughout a nation's economy. The rate of inflation is determined by changes in the price level, an average of all prices. If some prices rise and others fall, the price level may not change. Therefore, inflation occurs only if most major prices go up. (World Book)
3) An increase in the overall level of prices in the economy (Economics N. Gregory Mankiw, Mark P. Taylor)
4) A persistent increase in the level of prices. (AQA Economics)
The rate at which prices in a country rise, analysed by the Consumer Price Index (CPI) and Retail Price Index (RPI)
The rate at which prices in a country rise, analysed by the Consumer Price Index (CPI) and Retail Price Index (RPI)
GDP (Gross Domestic Product)-
1) The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. The value of output (or fincome or expenditure) in terms of the prices actually paid. GDP = GVA + taxes on products – subsidies on products.
GDP = C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
(Investopedia.com)
2) The value of output (or fincome or expenditure) in terms of the prices actually paid. GDP = GVA + taxes on products – subsidies on products. (Economics John Slowman)
3) The market value of al final good and services produced within a country in a given period of time.
4) The total value of goods and services produced in the economy. (AQA Economics)
Real GDP: The total value of goods produced by an certain economy considering inflation.
GDP: The total value of goods produced by a certain economy.
Real GDP: The total value of goods produced by an certain economy considering inflation.
GDP: The total value of goods produced by a certain economy.
Recession-
1) A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession.
(Investopedia.com)
2) A period where national output falls for six months or more.
3) A period of declining real incomes and rising unemployment. (Economics N. Gregory Mankiw, Mark P. Taylor)
4) When an economy is growing at less than its long term trend rate of growth. (AQA Economics)
Two consecutive quarters of negative economic growth.
Two consecutive quarters of negative economic growth.
Investment-
1) An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
(Investopedia.com)
2) The production of items that are not for immediate consumption. This can include investment in plant and equipment; such investment builds the stock of firms’ capital and yields a flow of future output. Investment also includes adding to stocks of goods or resources which are not sold or sued in the current period, but will be in the future. (Economics John Slowman)
3) Spending on capital equipment, inventories and structures, including household purchases of new housing. (Economics N. Gregory Mankiw, Mark P. Taylor)
4) Spending by firms on buildings, machinery and improving the skills of the labour force. (AQA Economics)
Spending money by firms on capital.
Spending money by firms on capital.
Capital-
1) 1. Financial assets or the financial value of assets, such as cash.
2. The factories, machinery and equipment owned by a business.
(Investopedia.com)
2) All in puts into production that have themselves been produced: e.g. factories, machines and tools. (Economics John Slowman)
3)The equipment and structures used to produce goods and services. (Economics N. Gregory Mankiw, Mark P. Taylor)
4) Wealth in the form of money or assets, taken as a sign of the financial strength of an individual, organization, or nation, assumed to be available for development or investment. (Businessdictionary.com)
Equipment and tools used to produce a product by a company.
Output gap-
1) An economic measure of the difference between the actual output of an economy and the output it could achieve when it is most efficient, or at full capacity. There are two types of output gaps: positive and negative. A positive output gap occurs when actual output is more than the full-capacity output. Negative output gap occurs when actual output is less than full-capacity output.
(Investopedia.com)
2) The difference between actual and potential output. When actual output exceeds potential output, the gap is positive. When actual output is less than potential output, the gap is negative.
3) The difference between the actual output (such as GDP) of an economy and the output that the economy would be at under full capacity or maximum efficiency (the potential output) A negative output gap, in which actual production is lower than efficient production, indicates that resources are not properly allocated. A positive output gap indicates that GDP is higher than what we can supported by existing labor and capital resources, and is a leading indicator of inflation. (Businessdictionary.com)
4) The output gap is a measure of the difference between actual output (Y) and potential output (Yf).
4) The output gap is a measure of the difference between actual output (Y) and potential output (Yf).
The output gap = Y- Yf
Negative Output Gap. This occurs when actual output is less than potential output gap. This is also called a deflationary (or recessionary) gap. In this situation the economy is producing less than potential. There will be unemployment, low growth and / or a fall in output. A negative output gap will typically cause low inflation or even deflation.
Positive Output Gap. This occurs when actual output is greater than potential output. This will occur when economic growth is above the long run trend rate (e.g. during an economic boom). It will involve firms asking workers to overtime.
With a positive output gap, there will be inflationary pressures. It will also tend to cause a bigger current account deficit as consumers buy more imports due to domestic supply constraints.
The difference between the trend output of a country (predicted output) and the actual output of a country. There can be a negative or positive output gap.
Aggregate Supply-
1)The total supply of goods and services produced within an economy at a given overall price level in a given time period. It is represented by the aggregate-supply curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally, there is a positive relationship between aggregate supply and the price level. Rising prices are usually signals for businesses to expand production to meet a higher level of aggregate demand.
Also known as "total output".
(Investopedia.com)
2) The total amount of output in the economy. (Economics John Slowman)
3) A curve that shows the quantity of goods and services that firms choose to produce and sell at each price level. (Economics John Slowman)
4) The total value of goods and services supplied in the economy. (AQA Economics)
The total amount of supply produced by a certain economy or firm.
The total amount of supply produced by a certain economy or firm.
Fiscal Policy-
1) Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
(Investopedia.com)
2) Policy to affect aggregate demand by altering the balance between government expenditure and taxation. (Economics John Slowman)
3) The policy of the government regarding taxation and government expenditure. (AQA Economics)
4) Government's revenue (taxation) and spending policy designed to counter economic cycles in order to achieve lower unemployment, archive low or no inflation, and achieve sustained but controllable economic growth. (Businessdictionary.com)
Fiscal policies are government tools to adjust the economy, including taxation and government expenditure.
4) Government's revenue (taxation) and spending policy designed to counter economic cycles in order to achieve lower unemployment, archive low or no inflation, and achieve sustained but controllable economic growth. (Businessdictionary.com)
Fiscal policies are government tools to adjust the economy, including taxation and government expenditure.
Monetary Policy-
1) The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).(Investopedia.com)
2) Policy to affect aggregate demand by altering the supply or cost of money (rate of interest).
3) The set of actions taken by the central bank in order to affect the money supply. (Economics John Slowman)
4) Controlling the macroeconomy via changes in monetary variable such as the money supply or interest rates. (AQA Economics)
Government tools of adjusting the economy, including quantitative easing as well as adjusting the interest rates.
Government tools of adjusting the economy, including quantitative easing as well as adjusting the interest rates.
Economic growth-
1) An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation.
For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.
(Investopedia.com)
2) steady growth in the productive capacity of the economy (and so a growth of national income) (World Net Web)
3) The capacity of the economy to produce more good and services over time (AQA Economics)
4) Increase in a country's productive capacity, as measured by comparing gross national product in a year with the GNP in the previous year. (Businessdictionary.com)
The change of a economies capacity to produce goods and services over time.
Aggregate Demand
1) Total level of demand for desired goods and services (at any time by all group within a national economy) that makes up the gross domestic product (GDP). Aggregate demand is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports. (Business Dictionary.com)
2) The Total amount of goods and services demanded in the economy at a given overall price level and in a given time period. It is represented by the aggregate demand curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally there is a negative relationship between aggregate demand and the price level. Also known as "total spending" (Investopedia.com)
3) Total planned expenditure in the economy known by the identity C + I + G + (X - M) (AQA Economics)
4) The total demand for goods and services from all sources in the economy. It includes consumer spending, investment by firms in plant, machinery and stocks, government spending, the net effect of international trade. An increase in aggregate demand may lead to an increase in output provided there is underutilized productive capacity in the economy. If there is no spare capacity, and the economy is producing using all available, suitable resources, rising demand is likely to lead to inflation. (MANU'S thoughts)
The total demand for goods and services from all sources in the economy at a certain price level and in a given time period. Can be calculated using the formula C + I + G + (X - M)
Deflation
1) A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. the opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum. (Investopedia.com)
2) A fall in the general price level or a contraction of redit and available money ( opposed to inflation). (Dictionary.com)
3) A situation where prices persistently fall (AQA Economics)
4) a contraction in the volume of available money or credit that results in a general decline in prices (Merriam-webster)
A general decline of available money leading to a decrease in the prices. This can be measured by the RPI and CPI.
Consumption
1) The utilisation of economic goods to satisfy needs or in manufacturing the consumption of energy has increased steadily. (Freedictionary.com)
2) Consumption is the value of goods and services bought by people. Individual buying acts are aggregated over time and space. (Economicswebinstitute.com)
3) The utilization of economic goods to satisfy needs or in manufacturing) "the consumption of energy has increased steadily" (Wordnetweb)
4) The utilization of economic goods to satisfy needs orin manufacturing; "the consumption of energy has increased (Dictionary.com)
The value of goods and services bought by people, and the utilization of ecnomic goods to satisfy needs.
Budget Deficit
1) A financial situation that occurs when an entity has more money going out than coming in. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When it refers to federal government spending, a budget deficit is also known as the "national debt". The opposite of a budget deficit is a budget surplus, and when inflows are equal to outflows, the budget is said to be balanced. (Investopedia.com)
2) The amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year. (Dictionary.com)
3) Where government spending exceeds government receipts in a financial year. (AQA Economics)
4) The amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year (Dictionary.com)
A budget deficit occurs when a country has more money going out through government expenditure than coming in through taxes in one fiscal year.
1) The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the exchange rate for one euro in terms of one yen, the lower the relative value of the yen. (Investopedia.com)
2) The ration at which a unit of the currency of one country can be exchanged for that of another country. (Dictionary.com)
3) The price at which one currency e.g. the pound exchanges for another e,g, the US dollar. (AQA Economics)
4) The ratio at which a unit of the currency of one country can be exchanged for that of another country. (Dictionary.com)
The rate at which one countries currency is valued compared to other countries at a certain time. E.g. 1$ = 80.p
Current Account of the Balance of Payments
1) The difference between a nation's total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. (Investopedia.com)
2) The difference between a nation's total payments to foreign countries, including movements of capital and gold, investments, tourist spending, etc, and its total receipts from foreign countries. (Dictionary.com)
3) Exports minus imports - a deficit means more is imported than exported. (Economics AQA)
4) A record on all transactions associated with imports and exports, together with all international capital movements (Dictionary.com)
The current account of the balance of payments is the current account of the balance of trade, (exports - imports)
Supply-Side Policies
1) A policy intended to improve conditions favourably, which encourages supply in an economy. For example improving education would increase the supply of educated workers in the workforce. This is contrasted with demand management policies which seek to increase and stabilise GDP by limiting demand. An ideal mix of such policies would combine supply side and demand management policies. (lse.co.uk)
2) Supply side economic policies are mainly micro- economic policies designed to improve the supply side potential of an economy, make markets and industries operate more efficiently and thereby contribute to a faster rate of growth of real national output. (Tutor2u.net)
3) Changes in the level or structure of government spending and taxation designed to improve the supply side of the economy through influencing incentives to save, to supply labour , to be entrepreneurial, and to promote investment, which are largely microeconomic in nature. (AQA Economics)
4) Supply Side economics is the branch of economics that considers how to improve the productive capacity of the economy. It tends to be associated with Monetarist, free market economics. These economists tend to emphasise the benefits of making markets, such as labour markets more flexible. However, some supply side policies can involve government intervention to overcome market failure (Economicshelp)
Supply side policies are governmental policies to improve the supply side of an economy resulting in an adjustment of the long term growth. Supply side policies include, privatisation, reducing income taxes, education and training, reducing the power of trade unions, reducing benefit, providing information about jobs, and removing unnecessary red tape.
4) Increase in a country's productive capacity, as measured by comparing gross national product in a year with the GNP in the previous year. (Businessdictionary.com)
The change of a economies capacity to produce goods and services over time.
Aggregate Demand
1) Total level of demand for desired goods and services (at any time by all group within a national economy) that makes up the gross domestic product (GDP). Aggregate demand is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports. (Business Dictionary.com)
2) The Total amount of goods and services demanded in the economy at a given overall price level and in a given time period. It is represented by the aggregate demand curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally there is a negative relationship between aggregate demand and the price level. Also known as "total spending" (Investopedia.com)
3) Total planned expenditure in the economy known by the identity C + I + G + (X - M) (AQA Economics)
4) The total demand for goods and services from all sources in the economy. It includes consumer spending, investment by firms in plant, machinery and stocks, government spending, the net effect of international trade. An increase in aggregate demand may lead to an increase in output provided there is underutilized productive capacity in the economy. If there is no spare capacity, and the economy is producing using all available, suitable resources, rising demand is likely to lead to inflation. (MANU'S thoughts)
The total demand for goods and services from all sources in the economy at a certain price level and in a given time period. Can be calculated using the formula C + I + G + (X - M)
Deflation
1) A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. the opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum. (Investopedia.com)
2) A fall in the general price level or a contraction of redit and available money ( opposed to inflation). (Dictionary.com)
3) A situation where prices persistently fall (AQA Economics)
4) a contraction in the volume of available money or credit that results in a general decline in prices (Merriam-webster)
A general decline of available money leading to a decrease in the prices. This can be measured by the RPI and CPI.
Consumption
1) The utilisation of economic goods to satisfy needs or in manufacturing the consumption of energy has increased steadily. (Freedictionary.com)
2) Consumption is the value of goods and services bought by people. Individual buying acts are aggregated over time and space. (Economicswebinstitute.com)
3) The utilization of economic goods to satisfy needs or in manufacturing) "the consumption of energy has increased steadily" (Wordnetweb)
4) The utilization of economic goods to satisfy needs orin manufacturing; "the consumption of energy has increased (Dictionary.com)
The value of goods and services bought by people, and the utilization of ecnomic goods to satisfy needs.
Budget Deficit
1) A financial situation that occurs when an entity has more money going out than coming in. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When it refers to federal government spending, a budget deficit is also known as the "national debt". The opposite of a budget deficit is a budget surplus, and when inflows are equal to outflows, the budget is said to be balanced. (Investopedia.com)
2) The amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year. (Dictionary.com)
3) Where government spending exceeds government receipts in a financial year. (AQA Economics)
4) The amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year (Dictionary.com)
A budget deficit occurs when a country has more money going out through government expenditure than coming in through taxes in one fiscal year.
Exchange Rate |
2) The ration at which a unit of the currency of one country can be exchanged for that of another country. (Dictionary.com)
3) The price at which one currency e.g. the pound exchanges for another e,g, the US dollar. (AQA Economics)
4) The ratio at which a unit of the currency of one country can be exchanged for that of another country. (Dictionary.com)
The rate at which one countries currency is valued compared to other countries at a certain time. E.g. 1$ = 80.p
Current Account of the Balance of Payments
1) The difference between a nation's total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. (Investopedia.com)
2) The difference between a nation's total payments to foreign countries, including movements of capital and gold, investments, tourist spending, etc, and its total receipts from foreign countries. (Dictionary.com)
3) Exports minus imports - a deficit means more is imported than exported. (Economics AQA)
4) A record on all transactions associated with imports and exports, together with all international capital movements (Dictionary.com)
The current account of the balance of payments is the current account of the balance of trade, (exports - imports)
Supply-Side Policies
1) A policy intended to improve conditions favourably, which encourages supply in an economy. For example improving education would increase the supply of educated workers in the workforce. This is contrasted with demand management policies which seek to increase and stabilise GDP by limiting demand. An ideal mix of such policies would combine supply side and demand management policies. (lse.co.uk)
2) Supply side economic policies are mainly micro- economic policies designed to improve the supply side potential of an economy, make markets and industries operate more efficiently and thereby contribute to a faster rate of growth of real national output. (Tutor2u.net)
3) Changes in the level or structure of government spending and taxation designed to improve the supply side of the economy through influencing incentives to save, to supply labour , to be entrepreneurial, and to promote investment, which are largely microeconomic in nature. (AQA Economics)
4) Supply Side economics is the branch of economics that considers how to improve the productive capacity of the economy. It tends to be associated with Monetarist, free market economics. These economists tend to emphasise the benefits of making markets, such as labour markets more flexible. However, some supply side policies can involve government intervention to overcome market failure (Economicshelp)
Supply side policies are governmental policies to improve the supply side of an economy resulting in an adjustment of the long term growth. Supply side policies include, privatisation, reducing income taxes, education and training, reducing the power of trade unions, reducing benefit, providing information about jobs, and removing unnecessary red tape.
