1
Q
circular flow of income model
A
2
Q
GDP methods
A
3
Q
why is AD curve downward sloping?
A
4
Q
determinants of consumption
A
5
Q
determinants of saving
A
6
Q
determinants of investment
A
7
Q
types of gov spending
A
8
Q
determinants of net exports
A
9
Q
when talking abt LRAS what are the three things u should always link to
A
quality and quality of factors of production
productive efficiency( LR costs)
10
Q
eg of how those things be achieved
A
11
Q
examples of cost of production
A
12
Q
classical AD AND LRAS diagram
A
13
Q
keynes diagram
A
14
Q
how to analyse shift in AD
A
15
Q
analyse shift in LRAS
A
16
Q
multiplier effect
A
17
Q
accelerator effect
A
18
Q
negative/deflationary/ recessionary output gap
A
where actual output is less than potential output
19
Q
positive output gap
A
where actual output is greater than potential output
20
Q
measures of economic growth and living standards
A
GDP
GDP per capita
GNI
Green GDP
21
Q
GDP
A
value of all final goods and services produced in an economy in a year
22
Q
evaluation of GDP as a measure of growth
A
23
Q
evaluation of GDP as a measure of living standards
A
24
Q
GDP per capita
A
individual incomes in economy
GDP/ population
25
evaluation of GDP perf capita
can use same issues as GDP
remittances aren’t included and not taken into account and they are becoming more significant which increases living standard but not included in GDP per capita.
too of using GDP per capital is FDI can distort figure by increasing GDP but profit is remitted back to home country and not domestic
26
GNI and Green GDP
gross national income- the total income earned by a countries factors of production
GDP + net factor income
green GDP- accounts for the environmental costs of production
GDP- environmental costs
27
evaluation for green GDP
28
economic growth
an increase in the real GDP in an economy in a year caused by an increase in AD or LRAS
29
short run causes of economic growth
30
long run causes of economic growth
31
economic cycle
32
BOOM
33
RECESSION/TROUGH
34
RECOVERY
35
what is a shock
can fluctuate growth
36
demand side shocks
37
supply side shocks
38
benefits of growth
39
costs of growth
40
evaluation of benefits n costs of growth
41
unemployed
42
two unemployments measures
labour force survey
claimant count
43
labour force survey (LFS)
44
claimant count
45
issues w claimant count
46
evaluation of measures of unemployment
sampling error - sample size is 40000 households so trying to extrapolate from this data can cause error ( marginal error is +/-3)
cost - to collect, look at results and interpret data
discourages workers - ‘hidden unemployment’ - who keep trying to work but can’t get it so they aren’t counted as unemployed
47
types of unemployment
cyclical
classical
structural
frictional
seasonal
48
cyclical
49
classical
50
structural
51
frictional
in between jobs
52
seasonal
temporary changes in demand
53
reasons for different types of unemployment
54
benefits of unemployment
55
costs of unemployment
56
evaluation for benefits n costs of unemployment
57
measures of inflation
consumer price index ( CPI)
58
consumer price index
59
evaluation of consumer price index
housing costs - don’t include rent/ mortgage/ maintenance/ council tax - spend a lot of money on these things so maybe cpih is more effective as it includes housing costs
basket updates too slow- once a year? quick/ good enough? consumer hairs may change sooner so not representative
60
benefits of inflation
that are based on nominal values- maybe less gov spending
61
costs of inflation
62
what are some other cost
63
eval of benefits and costs of inflation
64
deflation
65
deflation is dangerous bc?
66
how is it beneficial in sr?
67
eval for deflation ? it depends on?
68
progressive
higher income higher tax and vice versa
69
proportionate rate
fixed rate for everyone
70
regressive
high income lower tax and vice versa
71
what does fiscal policy involve
changes to gov spending and taxation in order to influence AD
72
expansionary fiscal policy
73
cons of expansionary fiscal policy
74
evaluation of expansionary fiscal policy
75
budget deficit
when gov spending is greater than tax revenue in a year
76
structural budget deficit
budget deficit at full employment
77
cyclical budget deficit
budget deficit in a recession
78
national debt
total stock of gov debt over time
79
benefits of running a budget deficit
incentive of tax cuts - incentive to work/ work harder - increase immigration and investments
increase tax return in LR
crowding in - promote private sector investing due to demand
they can make more profits
80
costs of running a budget deficit
worsening of current account deficit as growth/ unemployment rises so instead spending on imports - demand pull inflation - reduces competitiveness of exports
crowding out
x inefficiency- and safe as gov isn’t profit incentive
81
evaluate benefits n costs of running a budget deficits
82
budget surplus
when tax rev is greater than gov spending in a yr
83
benefits of budget surplus/ contraction are fiscal policy
84
evaluation of benefits n cons of budget surplus/ contraction are fiscal policy
85
cons of budget surplus/ contraction are fiscal policy
86
monetary policy
87
expansionary monetary policy
88
expansionary monetary policy transmission mechanism
89
cons of expansionary monetary policy
90
evaluation of expansionary monetary policy
91
benefits of contractionary monetary policy
92
cons of contractionary monetary policy
93
aim of supply side policies
94
interventionist supply side policies
95
market based supply side policies
96
eval of supply side policies
97
policies to reduce cyclical unemployment
98
eval to policies to reduce cyclical unemployment
99
policies to reduce real wage unemployment
100
eval on policies to reduce real wage unemployment
101
policies to reduce structural unemployment
102
policies to reduce frictional unemployment
103
eval for policies to reduce structural and frictional unemployment
104
policies and eval to reduce demand pull inflation
105
policies and eval to reduce cost push inflation
