Keywords for Chapter 5 (AS):
1. Aggregate
demand (AD): Total demand for all goods and services produced within the
economy over a period of time by the households, firms, government and
foreigners
2. Aggregate
supply (AS): Total supply of goods and services by all firms within the economy
over a period of time
3. Base
year: A year chosen so that comparisons can be made over a period of time and
it is represented by an index of 100
4. Claimant
count: A measure of unemployment which considers the number of people who
officially register themselves as unemployed
5. Consumption
(C): Household expenditures onto all goods and services
6. Consumer
Price Index (CPI): A way of measuring changes in the prices of a number of goods and
services in an economy over a period of time
7. Cost-push
inflation: An increase the general price level which is due to rise costs and
this can be represented by a leftward shift of AS
8. Economically
active: Refers to people who are currently employed or actively seeking for
employment
9. Economically
inactive: Refers to working age adults (16 and above) who are neither employed
nor seeking employment
10. Demand-pull
inflation: An increase in the general price level which is due to rise in total
spending into an economy and this can be represented by a rightward shift of
the AD curve
11. Dependency
ratio: The ratio of dependent people (0-15 and above 65 years old) to those who
are economically active
12. Government
expenditure (G): Public sector spending onto all goods and services, investment
in the form of capital asset and also transfers
13. Investment:
An increase in the capital stock such as new plant, building and machines
14. Imported
inflation: A sustained increase in the general price level due to increase in
the price of imports and this may be due to inflation in other countries or
weakness of home currency itself
15. Labour
force/ workforce/ working population: Refers to people in a country who are
either currently employed or actively seeking for employment
16. Labour
Force Survey (LFS): A measure of unemployment which considers a person as unemployed
if he/ she has been looking for jobs since the past 4 weeks and are able to
start work in the next 2 weeks
17. Labour
Force Participation Rate (LFPR): Percentage of the people who are of working
age (16 and above) that are economically active (currently employed or actively
seeking for employment)
18. Monetary
inflation: A sustained increase in the general price level due to rise in money
supply which eventually causes total spending to increase at a rate faster than
what the whole economy can actually supply
19. Nominal
value/ money value: Value of money without taking into account the effect of
inflation
20. Net
exports (X-M): The difference between the total value of exports and the total
value of imports
21. Productivity:
Output per worker per period of time
22. Real
value: Value of money after netting off the impact of inflation
23. Retail
Price Index (RPI): A measure of changes in the prices of a number of goods and
services in an economy over a period of time which also includes items that are
not included in the CPI such as housing related costs
24. Unemployment:
Refers to people of working age (16-60 women and 16-65 men), able and willing
to work but are unable to secure a job at the going wage rate
25. Weights:
A percentage which is attached to all goods and services in the basket and they
are all different to reflect their importance to an average consumer
No comments:
Post a Comment