Economics Unit 2 - The measurement of the macroeconomic performance 0.0 / 5 ? EconomicsMacroeconomic indicatorsASAQA Created by: anna_richardsCreated on: 05-03-16 19:44 What are the 4 macroeconomic objectives? Trade, Inflation, Growth, Employment 1 of 17 What are the 4 macroeconomic indicators? Balance of payments, CPI/RPI, GDP per capita, Claimant count/Labour force survey 2 of 17 When will a trade surplus occur? Exports > Imports 3 of 17 When will a trade deficit occur? Exports < Imports 4 of 17 What are the 4 sections of the balance of payments? Trade in goods, Trade in services, Net money transfer, Net income flow 5 of 17 What happens when there is a fall in the exchange rate? (Depreciation) WPIDEC, Exports > Imports 6 of 17 What happens when there is a rise in the exchange rate? (Appreciation) SPICED, Exports < Imports 7 of 17 What is inflation? A sustained increase in the general price level 8 of 17 What is the UK inflation target? 2% 9 of 17 What is the difference between CPI and RPI? RPI includes house prices 10 of 17 What are the 2 causes for inflation? Cost-push and Demand-pull 11 of 17 Does inflation increase or decrease the value of money? Decrease 12 of 17 What is deflation? A fall in the general price level, negative inflation 13 of 17 What is GDP? The total value of all goods and services 14 of 17 How can growth be shown in the short run? Increase in AD 15 of 17 How can growth be shown in the long run? Increase in productive potential 16 of 17 What is an output gap? A measure of the difference between actual growth and trend growth 17 of 17
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