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MR CUMMISKY ECONOMICS > MACROECONOMICS > Flashcards

MACROECONOMICS Flashcards

1
Q

What is consumer confidence?

A

How average individuals feel about their current and future situation

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2
Q

What is a tariff?

A

Tax placed on an imported good into a country

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3
Q

What happens to the AD curve when AD rises?

A

AD shifts to the right

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4
Q

What is debt (govt debt)?

A

The accumulation of previous deficits

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5
Q

What are the 3 ways of reducing the budget deficit?

A
  • Borrowing (bonds)
  • sell govt assets
  • Use surplus from previous years
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6
Q

What is the aggregate demand curve?

A

Shows the level of planned demand for real output consistent with a price level

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7
Q

How do imports affect AD?

A
  • Transport costs
  • Protectionism
  • stage of econ cycle locally
  • quota
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8
Q

How do exports affect AD?

A
  • Stage of the econ cycle abroad
  • tariffs
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9
Q

How does business spending affect AD?

A
  • spare capacity in the economy
  • interest rates
  • Corporation tax rates
  • employment levels
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10
Q

How does government spending affect AD?

A
  • unemployment levels
  • Tax revenue
  • population growth
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11
Q

How does consumption affect AD?

A
  • Interest rates
  • income levels
  • consumer confidence
  • stage of econ cycle
  • income tax rates
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12
Q

What are the 3 ways of measuring national income?

A

Income, expenditure, output

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13
Q

What is skimpflation?

A

When a company uses less expensive materials but maintains the same price

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14
Q

What are the stages of the economic trade cycle?

A

Downturn, recession, recovery, peak/boom

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15
Q

What are the factors for production?

A

Land, labour, enterprise, capital

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16
Q

What is the income method?

A

Wages
Interest
Rent
Profits/dividends

17
Q

What is the AD formula?

A

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

18
Q

What is GDP?
Per capita?

A

Value of total output in a year
Divided by the population

19
Q

What is another term for total spending?

A

Aggregate Demand

20
Q

What are the 3 injections?

A

Government spending
Exports
Bank loans/investment

21
Q

What is nominal economic growth?

A

The percentage increase in GDP from one year to the next

22
Q

What is the expenditure method?

A

Government spending
Consumption
Investment spending
Net exports

23
Q

What is the real economic growth calculation?

A

Nominal - inflation

24
Q

What are the 3 withdrawals?

A

Taxation
Savings
Imports

25
Q

What does ceteris parabus mean?

A

All other things remain equal

26
Q

What is shrinkflation?

A

When a company decreases the amount in a product but keeps the same price

27
Q

The demand for labour…?

A

Is derived from the demand for the goods and services that labour produces

28
Q

What are the signs of changes in the economic cycle?

A

Economic downturn
Increase in unemployment
Falling AD
Reduced output
Falling tax revenues
Increased govt spending on benefits
Stock market falls
Reduced cc.
Order books of firms get emptier

29
Q

What are the government economic objectives in a mixed economy?

A
  • Encouraging price stability
  • favourable balance of payments on the current account
  • Promoting steady economic growth
  • Redistributing income and wealth more equitably
  • Reducing national debt and govt budget deficit
  • Ensuring working population is productive.
30
Q

What is the aggregate demand curve?

A

Shows the level of planned demand for real output consistent with a particular price level

31
Q

What is an exchange rate?

A

The value of one currency in terms of another

32
Q

What does SPICED stand for?

A

Strong
Pound
Imports
Cheap
Exports
Dear

33
Q

What does WPIDEC stand for?

A

Weak
Pound
Imports
Dear
Exports
Cheap

34
Q

What are shifts in short run aggregate supply?

A
  • input costs
  • Business taxes / subsides / imported costs
  • supply shocks
35
Q

What are some external factors affecting AS?

A
  • World oil and gas prices
  • energy prices /costs
  • other mineral /metal prices
  • foodstuff prices
  • import tariffs /quotas

MR CUMMISKY ECONOMICS (6 decks)

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