Flashcards in Economic growth Deck (24)
What's the ideal inflation rate?
What are some benefits of economic growth?
Consumption/production of goods and services,
What causes demand pull inflation?
Population growth, increased income, increased consumer confidence
What causes cost push inflation?
Increased oil prices/taxes/wages
Persistent and appreciable rises in price levels, price increase to all goods and services over time
Headline rate of inflation
Unadjusted for anomalies, potentially misleading
Accounts for volatile factors/anomalies
Quarterly summary of all goods and services
How many categories are accounted for in the basket of goods?
11 groups, 33 subgroups, 90 classes
When is the cash rate reviewed?
1st Tuesday every month
What was the inflation rate from the 70s-80s?
What was the inflation rate in the 90s?
Who controls interest rates (and who has no say)?
Reserve bank of Australia, government independent
Low inflation rates
Everyone willing to work can find employment
Natural rate of unemployment
Why is it impossible to have an unemployment rate of 0?
Why are growth and full employment compatible?
Reliant on expanding economic opportunities
Increasing capacity of an economy to satisfy material wants of the population
Value of output in today's prices
Adjusted for inflation
How often is inflation calculated?
Which type of inflation is beneficial?