actual numerical measure of aggregate output typically used by economists
Unemployment
total number of people who are actively looking for work but aren’t currently employed
Current account transactions
arise from the export or import of goods and services
Recession
two consecutive quarter-year periods in which the total value of output is falling
Unilateral transfers
gifts from residents of foreign countries
Fiscal policy
– Control of government spending and taxation – Developed during and after the Great Depression
Macroeconomics
– Focused on the behaviour of the economy as a whole – total output level, the general level of prices and the overall level of employment – global economy – Long-run growth – The Thrift Paradox – Focus on economic aggregates
Long-run growth per capita
key to higher wages and a rising standard of living
Discouraged workers
people who are capable of working but have given up looking for jobs because they don’t think they will find them
National saving
the portion of output, Y, that is not devoted to household consumption, C, or government purchases, G, S = Y – C – G
