All Definitions Flashcards
Automatic Stabilisers
Forms of government spending and taxation that dampen down the affects of fluctuations without government policy changes.
Balance of Payments
A record of a countries trade and investment with other countries.
Bilateral Exchange Rate
The exchange rate comparison between two countries.
Budget Deficit
Expenditure exceeds revenue.
Budget Surplus
Revenue exceeds expenditure.
Capital Output Ratio
The amount of capital required to generate each unit of output.
Claimant Count
The number of people claiming unemployment benefits.
Catch-up Affect
A theory believing, poorer economies grow more rapidly than richer ones then all economies will converge in terms of per capita income. Economically becoming similar.
Crowding-out
Government spending that drives down private sector spending.
Customs Union
An agreement between two or more to abolish tariff’s on trade and place a common tariff on countries in in the agreement.
Cost Push Inflation
Increases in the average price levels as a result of increases in the cost of production.
Cyclical Unemployment
Unemployment resulting from the lack of aggregate demand.
Demand Pull Inflation
Increases in the average price level resulting from excessive increases in aggregate demand.
Economic Growth
The growth in the value of output in the economy.
Dependancy Ratio
Proportion of the population who are too young, too old or too sick to work and are reliant on the output of those who are working.
