Recession occurs if the real GDP falls for two consecutive quarters

Gross domestic product measures the total output in an economy,measured by total production by firms /total incomes by the factors of production/by total spending.all three measurements in theory are equal;they represent the circular flow at various points .

Multiplier is the number of times a rise in incomes exceeds the rise in injections that caused it.It measures the knock on effects when an injections or withdrawals change.

Inflation is a persistent and general increase in the price level measured by inflation rates. It is used as a target for monetary policy which is typically say at 2%.

Wealth is a stock of assets.eg.property ,shares. Positive wealth effect occurs when an increase in the house hold wealth causes an increase in the consumption and confidence.

Consumer price index is the measure of the average level of price.An Expenditure and Food Survey and a Price survey is conducted periodically to measure the total cost of a basket of goods. Goods and services are weighted based on proportion of expenditure spent on different items and are then convert to index from relative to a base year.It excludes housing costs.

Unemployment rate is the present age of the workforce that is able and willing to work ,but is not currently employed. It is lagging indicator because there is a time delay between measurement and announcement.

Claimants Count is a government measure of those claiming unemployed benefits.Claimants must be under saving cap,under18-60/65,be able to prove they are looking for work and are registered at unemployment office.unemployment may be underestimated because some eligible claimant do not claim

Balance of payments is the record of a country's financial transition with the rest of the world.

Current account of balance of payments is the record of a country's trade of exports and imports in goods and services,investments income,and current account transfers with the rest of the world.

Exchange rate is the price of one currency in terms of another.

Aggregate supply is the total spending on goods and services in an economy. Its components are consumption,investment,government spending and net exports.

Investment is the increase in the capital stocks such as machinery ,buildings and changes in the inventories. It is determined by interest rate ,confidence and the availability of credit.

Macroeconomic objectives are the main aims of the government to achieve improved economic welfare.these include high economic growth,low unemployment rate,controlled inflation,equilibrium in the balance of payments, environmental protection and more equal income distribution.