Macro 9 - Random

Question 1

Animal spirits

Answer 1

The level of confidence of business owners

Question 2

Short run phillips curve

Answer 2

Shows the relationship between unemployment and inflation: higher levels of unemploment lead to lower levels of inflation

Question 3

Index numbers

Answer 3

Numbers allowing accurate comparisons over time to be made.

Question 4

Base year

Answer 4

A year chosen as a good comparson in serioes of data when builidng an index. Base year - 100

Question 5

Positive output gaps

Answer 5

When GDP is higher than predicted; the economy is producing above full output

Question 6

Negative output gaps

Answer 6

When GDP is lower than predicted; the economy is producing below full output

Question 7

Output gaps

Answer 7

The difference between the long term trend rate of growth and actual growth