AQA Economics- Year 1
(Macroeconomics) 2024 Exam
Study Guide
Macroeconomics - Answer>> involves the study of the whole
economy at the aggregate level
Policy Objective - Answer>> a target or goal that policy-makers
aim to 'hit'
Short-Run Economic Growth - Answer>> growth of real output
resulting from using idle resources, including labour, thereby
taking up the slack in the economy
Long-Run Economic Growth - Answer>> an increase in the
economy's potential level of real output, and an outward shift of
the economy's production possibility frontier
GDP - Answer>> the sum of all goods and services, or level of
output, produced in the economy over a period of time
Real GDP - Answer>> a measure of all the goods and services
produced in an economy, adjusted for price changes or inflation
Nominal GDP - Answer>> GDP measured at the current market
prices, without removing the effects of inflation
Recession - Answer>> a fall in real GDP for 6 months or more
,Full Employment - Answer>> when demand and supply for
labour in an economy are in equilibrium (at the price of market
wages)
Claimant Count - Answer>> the method of measuring
unemployment according to those people who are claiming
unemployment related benefits (Jobseeker's allowance)
Labour Force Survey - Answer>> a quarterly sample survey of
households in the UK. Its purpose is to provide information on the
UK labour market.
Inflation - Answer>> a persistent or continuing rise in the
average price level
Deflation - Answer>> a persistent or continuing fall in the
average price level
Disinflation - Answer>> when the rate of inflation is falling, but
still positive
Price Index - Answer>> an index number showing the extent to
which a price, or a 'basket' of prices, has changed over a month,
quarter or year, in comparison with the price(s) in a base year
Consumer Prices Index (CPI) - Answer>> the official measure
used to calculate the rate of consumer price inflation in the UK.
The CPI calculates the average price change in a 'basket' of 700
goods and services
Retail Prices Index - Answer>> an older measure to calculate
the rare of consumer price inflation in the UK
, Indexation - Answer>> the automatic adjustment of items such
as pensions and welfare benefits to changes in price level,
through the use of a price index
Balance of Payments - Answer>> a record of all the currency
flows into and out of a country in a particular time period
Current Account of the Balance of Payments - Answer>>
measures all the currency flows into and out of a country in a
particular time period 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 in this country
Balance of Trade - Answer>> the difference between the
money value of a country's imports and its exports. Balance of
trade is the largest component of a country's balance of payments
on current account
Balance of Trade Deficit - Answer>> the money value of a
country's imports exceeds the money value of its exports
Balance of Trade Surplus - Answer>> the money value of a
country's exports exceeds the money value of its imports
Balanced Budget - Answer>> when government spending
equals government revenue, which is mostly tax revenue
(Macroeconomics) 2024 Exam
Study Guide
Macroeconomics - Answer>> involves the study of the whole
economy at the aggregate level
Policy Objective - Answer>> a target or goal that policy-makers
aim to 'hit'
Short-Run Economic Growth - Answer>> growth of real output
resulting from using idle resources, including labour, thereby
taking up the slack in the economy
Long-Run Economic Growth - Answer>> an increase in the
economy's potential level of real output, and an outward shift of
the economy's production possibility frontier
GDP - Answer>> the sum of all goods and services, or level of
output, produced in the economy over a period of time
Real GDP - Answer>> a measure of all the goods and services
produced in an economy, adjusted for price changes or inflation
Nominal GDP - Answer>> GDP measured at the current market
prices, without removing the effects of inflation
Recession - Answer>> a fall in real GDP for 6 months or more
,Full Employment - Answer>> when demand and supply for
labour in an economy are in equilibrium (at the price of market
wages)
Claimant Count - Answer>> the method of measuring
unemployment according to those people who are claiming
unemployment related benefits (Jobseeker's allowance)
Labour Force Survey - Answer>> a quarterly sample survey of
households in the UK. Its purpose is to provide information on the
UK labour market.
Inflation - Answer>> a persistent or continuing rise in the
average price level
Deflation - Answer>> a persistent or continuing fall in the
average price level
Disinflation - Answer>> when the rate of inflation is falling, but
still positive
Price Index - Answer>> an index number showing the extent to
which a price, or a 'basket' of prices, has changed over a month,
quarter or year, in comparison with the price(s) in a base year
Consumer Prices Index (CPI) - Answer>> the official measure
used to calculate the rate of consumer price inflation in the UK.
The CPI calculates the average price change in a 'basket' of 700
goods and services
Retail Prices Index - Answer>> an older measure to calculate
the rare of consumer price inflation in the UK
, Indexation - Answer>> the automatic adjustment of items such
as pensions and welfare benefits to changes in price level,
through the use of a price index
Balance of Payments - Answer>> a record of all the currency
flows into and out of a country in a particular time period
Current Account of the Balance of Payments - Answer>>
measures all the currency flows into and out of a country in a
particular time period 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 in this country
Balance of Trade - Answer>> the difference between the
money value of a country's imports and its exports. Balance of
trade is the largest component of a country's balance of payments
on current account
Balance of Trade Deficit - Answer>> the money value of a
country's imports exceeds the money value of its exports
Balance of Trade Surplus - Answer>> the money value of a
country's exports exceeds the money value of its imports
Balanced Budget - Answer>> when government spending
equals government revenue, which is mostly tax revenue
