AQA Macroeconomics A Level
Economics Complete 2024
Exam Study Guide
Short-Run Economic Growth - Answer>> Growth of real output
resulting from using idle resources, including labour, thereby
taking up slack in the economy. Shown by a movement of a point
inside the PPF to a point on the PPF
Long-Run Economic Growth - Answer>> An increase in the
economy's potential level of real output. Shown by an outward
shift of the PPF
Gross Domestic Product (GDP) - Answer>> The sum of all the
goods and services produced in an economy over a period of time
Nominal GDP - Answer>> GDP measured at the current market
prices, without removing the effects of inflation
Real GDP - Answer>> GDP adjusted for inflation or price
changes
Policy Objective - Answer>> A target or goal that policy makers
aim to achieve
Recession - Answer>> A fall in real GDP for 6 months or more
Full Employment (Beveridge's Definition) - Answer>> Occurs
when 3% or less of the labour force is unemployed
,Full Employment (Free Market Definition) - Answer>> Occurs at
the level of employment occurring at the market-clearing real-
wage rate, where the number of workers whom employers wish to
hire equals the number of workers wanting to work
Claimant Count - Answer>> The method of measuring
unemployment according to those people who are claiming
unemployment related benefits
Labour Force Survey - Answer>> A quarterly sample survey of
households in the UK. Its purpose is to provide information on the
UK labour market. The survey seeks information on respondents'
personal circumstances and their labour market status during a
period of 1-4 weeks
Inflation - Answer>> A persistent or continual rise in the
average price level over time
Deflation - Answer>> A persistent or continual fall in the
average price level over time
Disinflation - Answer>> When the rate of inflation is falling but is
still positive (It is rising more slowly than previously)
Price Index - Answer>> An index number showing the extent to
which a price, or a 'basket' of prices have changed over a month,
quarter or year in comparison with the prices in the base year
Consumer Prices Index (CPI) - Answer>> The official measure
used to calculate the rate of consumer price inflation in the UK.
It calculates the average price increase of a basket of 700
different consumer goods and services
, Retail prices index (RPI) - Answer>> An older measure used to
calculate the rate of consumer price inflation in the UK.
Balance of payments - Answer>> A record of all the currency
flows into and out of a country in a particular period of time
Current account of the balance of payments - Answer>>
Measures all the currency flows into and out of a country in a
particular period of time in payment for exports and imports,
together with income and transfer flows
Exports - Answer>> Domestically produced goods or services
sold to residents of other countries
Imports - Answer>> Goods or services produced in other
countries and sold to residents of this country
Balance of trade - Answer>> The difference between the
money value of a country's imports and its exports.
Balance of trade deficit - Answer>> Value of Imports > Value of
Exports
Balance of trade surplus - Answer>> Value of Imports < Value
of Exports
Balanced Budget - Answer>> Government Spending =
Government Tax Revenue
Budget Deficit - Answer>> Government Spending >
Government Tax Revenue
Economics Complete 2024
Exam Study Guide
Short-Run Economic Growth - Answer>> Growth of real output
resulting from using idle resources, including labour, thereby
taking up slack in the economy. Shown by a movement of a point
inside the PPF to a point on the PPF
Long-Run Economic Growth - Answer>> An increase in the
economy's potential level of real output. Shown by an outward
shift of the PPF
Gross Domestic Product (GDP) - Answer>> The sum of all the
goods and services produced in an economy over a period of time
Nominal GDP - Answer>> GDP measured at the current market
prices, without removing the effects of inflation
Real GDP - Answer>> GDP adjusted for inflation or price
changes
Policy Objective - Answer>> A target or goal that policy makers
aim to achieve
Recession - Answer>> A fall in real GDP for 6 months or more
Full Employment (Beveridge's Definition) - Answer>> Occurs
when 3% or less of the labour force is unemployed
,Full Employment (Free Market Definition) - Answer>> Occurs at
the level of employment occurring at the market-clearing real-
wage rate, where the number of workers whom employers wish to
hire equals the number of workers wanting to work
Claimant Count - Answer>> The method of measuring
unemployment according to those people who are claiming
unemployment related benefits
Labour Force Survey - Answer>> A quarterly sample survey of
households in the UK. Its purpose is to provide information on the
UK labour market. The survey seeks information on respondents'
personal circumstances and their labour market status during a
period of 1-4 weeks
Inflation - Answer>> A persistent or continual rise in the
average price level over time
Deflation - Answer>> A persistent or continual fall in the
average price level over time
Disinflation - Answer>> When the rate of inflation is falling but is
still positive (It is rising more slowly than previously)
Price Index - Answer>> An index number showing the extent to
which a price, or a 'basket' of prices have changed over a month,
quarter or year in comparison with the prices in the base year
Consumer Prices Index (CPI) - Answer>> The official measure
used to calculate the rate of consumer price inflation in the UK.
It calculates the average price increase of a basket of 700
different consumer goods and services
, Retail prices index (RPI) - Answer>> An older measure used to
calculate the rate of consumer price inflation in the UK.
Balance of payments - Answer>> A record of all the currency
flows into and out of a country in a particular period of time
Current account of the balance of payments - Answer>>
Measures all the currency flows into and out of a country in a
particular period of time in payment for exports and imports,
together with income and transfer flows
Exports - Answer>> Domestically produced goods or services
sold to residents of other countries
Imports - Answer>> Goods or services produced in other
countries and sold to residents of this country
Balance of trade - Answer>> The difference between the
money value of a country's imports and its exports.
Balance of trade deficit - Answer>> Value of Imports > Value of
Exports
Balance of trade surplus - Answer>> Value of Imports < Value
of Exports
Balanced Budget - Answer>> Government Spending =
Government Tax Revenue
Budget Deficit - Answer>> Government Spending >
Government Tax Revenue
