Economics EOY

Economic growth is the rise in the real GDP over a period of time

Gross domestic product is the total value of all goods and services produced within a country in a period of time

Is the total output of a country over the number of people. Calculated by total output divided by population

The total value of output produced in a country in number terms

The total output of all goods and services produced within a country taking inflation into account

Price stability is when the general price level stays constant over a period of time

The overall total prices of goods and services in an economy at a point in time

Is the rise in the general price level for a sustained period of time

When there is a decrease in the rate of inflation over a period of time.

Rate of inflation is the change in the CPI index over the period of time

When there is a decrease in the general price level in a period of time

Hyper inflation is when the rate of inflation is above 50%

Demand pull inflation is when the aggregate demand for goods and services outstrip the productive capacity of the economy

Cost push inflation is when there is an increase in the cost of production, this could be an increase in wages ( labour cost), which causes the producer to push the higher costs onto the consumers by increasing the general price level of his goods and services. Can cause cyclical movement… inflation of goods cause workers to demand a higher wage hence how

Is when there is an increase in the output in a country, an increase in the total goods and services produced. This could be a result of an increase in aggregate demand which causes firms to output more and demand more workers… reduces unemployment and causes economic growth( short)

Is when there is an increase in the productive capacity of the economy. An increase in the education or training facilities which causes there to be more workers available for the LONG term

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

Those in the working population who are able and willing to work but are unable to find work

Is when the economy nears to its full capacity of labour to produce output. This can be bad if aggregate demand keeps rising then demand pull inflation will occur

It is a measure of unemployment according to the number of people opting for JSA and unemployment benefits. This is not very accurate as you don’t have to accept JSA or you might not be eligible

Those aged between 16-64

Those of working age that are willing and able to work

Those of working age that are either unable or not willing to work

Refers to the number of people in the working population who are unemployed

Refers to the % of the countries workforce/working population that is unemployed. This is calculated by number of unemployed / working population or unemployed + employed * 100

When a person is unemployed caused by a fall in demand during a particular season. An example is a tourist hotel that is converted to a shopping centre during the winter.

Unemployment where the person is in the time period where the are waiting to join their new job. Time lag between jobs which is necessary to match the right person to the right job. Short term

Unemployment where there is a permanent lack of demand for a whole industry. Like the coal factories in the North or they could move production overseas for cheaper factors of production so they can compete better.

Unemployment where there is a decline aggregate demand in the whole economy like a recession

The ability to switch between jobs that have different skillset. Depends of their qualifications and training needed to be employed in that sector

The ability or willingness for a worker to accept a job in a different region or country. This can depend on the transport facilities and cost of travel.