Objectives of Government Economic Policy (AQA A-Level Economics): Flashcards
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Four main macroeconomic policy objectives
Four main macroeconomic policy objectives
Economic growth, full employment, price stability, bal. of payments
Real GDP vs Nominal GDP difference
Real GDP vs Nominal GDP difference
Real GDP adjusts for inflation; nominal uses current prices
UK recession official definition
UK recession official definition
Six months or more of negative economic growth (declining real GDP)
Beveridge's full employment definition (1944)
Beveridge's full employment definition (1944)
Unemployment falls to 3% of the labour force
UK's official unemployment measure
UK's official unemployment measure
Labour Force Survey (LFS)
Inflation
Inflation
General rise in average prices across the economy
Deflation vs disinflation
Deflation vs disinflation
Deflation: prices fall; disinflation: inflation rate falls (still +)
UK government inflation target rate
UK government inflation target rate
2% annual inflation rate
CPI (Consumer Prices Index)
CPI (Consumer Prices Index)
Official UK inflation measure; basket of 700 consumer goods/services
Balance of trade deficit
Balance of trade deficit
Money value of imports exceeds money value of exports