Macro1 Flashcards

(18 cards)

1
Q

Define speculation

A

Buying something when the price is low and then selling it when it’s expensive making a profit

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2
Q

Define insider training

A

Where inner knowledge is used to buy a share. This is illeagel

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3
Q

What is Austerity

A

A programme where the govt cuts public spending

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4
Q

Define primary sector

A

Farming and agriculture

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5
Q

Define secondary sector

A

Where the transition from the primary sector occurs turning raw materials into goods and services

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6
Q

Define tertiary sector

A

The area which provides the actual good or service

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7
Q

Three injections into the economy

A

Exports
Bank loans
Govt spending

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8
Q

Three withdrawls from the economy

A

Imports
Taxation
Savings

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9
Q

Define deficit

A

When people spend more than they earn

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10
Q

Define import

A

A good or service produced overseas which we consume here

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11
Q

Define export

A

A good or service produced here which is consumed overseas

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12
Q

How do you work out AD

A

AD=C+I+G+(X-M)

C= Consumer spending
I= investments
G= Govt spending
X and M= mports

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13
Q

Define nominal economic growth

A

The nominal economic growth is the % change in GDP from one year to the next

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14
Q

Define inflation rate

A

The change in price(s) from one year to the next

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15
Q

How do you work out the inflation rate

A

The % change in price from one year to the next

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16
Q

How do you work out real economic growth

17
Q

Define recession

A

Two consecutive quarters of negative growth

18
Q

Define AD

A

The total level of planned real expenditure on UK produced goods and services