Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics macro > unit 8 key words > Flashcards

unit 8 key words Flashcards

1
Q

economic recovery

A

short run growth after a recession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

demand side

A

impact of AD change

keynessian economics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

supply side

A

changes in potential output

affected by available prod factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

tend growth rate

A

rate which output grows on a sustained basis
without putting upward or downward pressure in inflation
reflects %AVG increase in prod capacity / anun

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

seasonal fluctuation

A

variation of economic activity from seasonal changes in economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

actual output

A

level of real output produced in economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

trend level of output

A

what economy is capable of producing when working is at full capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

output gap

A

actual real output level greater (positive) or lower (negative) than the trend output level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

frictional unemployment

A

job worker switches been jobs
usually short term
aka transitional unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

geographical immobility of labour

A

workers are unwilling or unable to move from one area to another in search of work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

occupational immobility of labour

A

workers are unwilling or unable to move from one type of job to another
ie different skills are needed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

structural unemployment

A

some industries declining while others are growing
occurs in a growing industry if automation reduces demand for labour & production need new skills
can lead to job loss
long term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

cyclical unemployment

A

aka keynessian unemployment or demand efficient unemployment
caused by lack of AD
recession or depression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

deindustrialisation

A

decline of manufacturing industries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

seasonal unemployment

A

unemployment arising in different times of the year ie end of Christmas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

real wage

A

purchasing power of nominal wage after adjustment to inflation

17
Q

voluntary unemployment

A

workers chose to remain unemployed

refuse job offers at current market wage

18
Q

involuntary unemployment

A

worker willing to work at current market wage

no jobs available

19
Q

real wage unemployment

A

unemployment caused by real wages stuck above EQ real wage rate

20
Q

EQ unemployment

A

aggregate labour market is in EQ

same as neutral level of unemployment

21
Q

natural rate of unemployment (NRU)

A

rate of unemployment

aggregate labour market is in EQ

22
Q

demand pull inflation

A

rising price level
increase in AD
aka demand inflation
AD curve right shift

23
Q

cost push inflation

A

rising price level
increase in costs of production
SRAS curve left shift

24
Q

wage cost inflation

A

rising price level
increase in wages and salaries
SRAS curve left shift

25
Q

import cost inflation

A

rising price level

increased cost of imported energy, commodities, food, manufactured goods

26
Q

emerging market economy

A

country progressing towards economic advances

ie rapid growth & industrialisation

27
Q

monetarists

A

economists

argue a prior increase in money supply causes inflation

28
Q

quantity theory of money

A

oldest theory of inflation

inflation caused by persistent increase in supply of money

29
Q

equation of exchange

A

stock of money in economy x by the velocity of circulation of money
= price level x real output in economy

30
Q

current account deficit

A

currency outflows in current account exceed currency inflows

aka export less than imports

31
Q

current account surplus

A

currency inflows in current account exceed currency in flows

aka exports greater than imports

32
Q

balance of trade in goods

A

part of current account
measuring payments for exports and imports of goods
value difference of exports & imports

33
Q

balance of trade in services

A

part of current account

payment difference of exports & imports

34
Q

net investment income

A

inward - outward flows of investment income

main component of primary income flows in current account balance of payments

35
Q

transfers

A

payment flows between countries
ie foreign aid, grants, private, gifts
made without economic-value return

36
Q

export LED growth

A

short-run) more exports = economic growth

long run) more international competitiveness of exporting industries = economic growth

37
Q

reindustrialise

A

growth of manufacturing industries

replace other industries which has declined or disappeared

38
Q

phillips curve

A

shows relationship between inflationary rate and unemployment rate
based on economics evidence

39
Q

long run phillips curve

A

role of expectations in inflationary process
vertical curve
located at natural unemployment rate(NRU)

Economics macro (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions