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in the short run, an increase in real GDP, and in the long run, an increase in productive capacity, that is, in the maximum output that the economy can produce
Sustainable economic growth
economic growth that can continue over time and does not endanger future generations' ability to expand productive capacity
the expecting increasing potential output over time. it is a measure of how fast the economy can grow without generating inflation
The people who are employed and unemployed, that is, those who are economically active.
people of working age who are neither employed nor unemployed
A situation where those willing and able to work can find employment at the going wage rate.
The percentage of the labour force who are out of work.
Labour force survey
A measure of unemployment based on a survey using the ILO definition of unemployment
International Labour Organisation
A member organisation of the United Nations that collects statistics on labour market conditions and seeks to improve working conditions.
a measure of unemployment that includes those receiving unemployment-related benefits
unemployment arising from a lack of aggregate demand
Unemployment caused by the decline of certain industries and occupations due to changes in demand and supply
Short-term unemployment occurring when workers are in-between jobs
Unemployment lasting for more than a year
A sustained rise in the price level.
a sustained fall in the general price level
Consumer Price Index
a measure of changes in the price of a representative basket of consumer goods and services.
Retail prices index
Measure of inflation that is used for adjusting pensions and other benefits to take account of changes in inflation and frequently used in wage negotiations.
increases in the price level caused by increases in aggregate demand
Increases in the price level caused by increases in the costs of production
The costs of changing prices due to inflation
Shoe leather costs
Costs in terms of the extra time and effort involved in reducing money holdings.
The distortion of price signals caused by inflation.
Real interest rate
The nominal interest rate minus the inflation rate
People's income being dragged into higher tax bands as a result of tax brackets not being adjusted in line with inflation