macro economic and performance
they help to show the performance, help form statistics and influence future decisions
GDP: value of all goods and services produced in an economy in a period of time, overall product of goods and services made.
nominal GDP: a GDP figure that doesn't include inflation
real GDP: a figure that includes inflation
GNP: this includes money from abroad/income from abroad-amount paid to ours overseas.
GDP + GNP shows standard of living and how well an economy is doing in comparison to others
GDP per capita: split into population; helps to show living standards and each individuals spending.
RPI: explains changes in spending from month to month, domestic measure for inflation
CPI is the average shopping basket of goods and services by each household.
an economy is a system which works to solve the basic economic problem of infinite wants and finite resources.
an economic system decides how production takes place, what is to be produced and who is to receive the goods and services.
economic growth is the rate of change of output. 2-3% is sustainable, our capacity to produce goods and services over time.
a trade off is where one macro economic objective is curtailed in favour of another
employment is when you are actively engaging in productive labour in exchange for payment
unemployment is those actively seeking work at current wage rates
inflation is the rate of change of average prices, 2% is acceptable, 5% is worrying.
The bank is in control of meeting the targets but the government set the targets
depression: the economy is in a period of particularly deep and long output. recession: a period where output is negative or low for two successive quarters.
