Macroeconomic Objectives (Revision Quizlet Activity)

Here are key terms in introductory macroeconomics that you can revise using Quizlet. We've added our own key term glossary too.

Key Terms to Revise

Animal spirits: State of confidence or pessimism held by consumers and businesses

Budget deficit: When government spending exceeds the value of tax revenues in a given period

Deflation: A decline in the general price level in an economy, signified by a negative inflation rate

Economic cycle: Short-run fluctuations of real GDP around a long-term trend

Exchange rate: The external value of one currency in terms of a second currency.

Exports: Goods or services sold to agents in other countries

Full employment: When everyone willing and able to work at the current wage rate is in work

GDP: The total value of goods and services produced..

Government (National) Debt: The total stock of unpaid debt issued by a government

Gross National Income (GNI): GDP plus net income from abroad.

Human Development Index: Measure of development progress including income, education and health attainment

Imports: Purchases of foreign goods and services

Inflation: Annual % change in consumer prices

Lagging indicators: Indicators which tend to follow economic cycles such as unemployment.

Leading indicators: Indicators which predict future economic trends such as consumer and business confidence

Monetary policy: Policy to affect the supply or cost of money (rate of interest).

National happiness: Societal and personal well-being looking beyond what an economy produces

Net trade: Value of exports minus the value of imports

Nominal GDP: Monetary value of all goods and services produced expressed at current prices

Output gap: A measure of spare capacity, the difference between actual and potential GDP

Per capita incomes: Income per head of the population - a measure of average living standards

Productivity: Key measure of efficiency - GDP per worker employed or GDP per hour worked

Purchasing power: The buying power of a unit of currency. It is inversely related to the rate of inflation.

Real disposable income: Income after taxes and welfare benefits, adjusted for the effects of inflation

Savings ratio: Ratio of personal saving to disposable income.

Supply-side policies: Policies that increase a country's productive capacity and competitiveness

Unemployment: % of the labour force out of work and actively seeking a job

Wealth: The value of a stock of assets such as housing, personal pensions and savings