Economics Unit 4 - Economic Indicators

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What is a recession?
Negative economic growth for 2 consecutive quarters
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Name 3 causes of a recession (Demand-side)
Higher interest rates, Deflation, Falling consumer confidence
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Name 3 causes of a recovery (Demand-side)
Lower interest rates, Inflation, Rising consumer confidence
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Name 2 causes of a recession (Supply-side)
Unemployment, Higher commodity prices
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Name 2 causes of a recovery (Supply-side)
More employment, Lower commodity prices
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Name the 4 factors that determine the long term trend growth (TTIE)
Technology, Training, Investment, Education
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What does exogenous mean?
Anything outside the components of AD
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What are the three factors that increase long term aggregate supply
Higher productivity, Increased supply of factor inputs, Technological advances
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Name 3 advantages of economic growth
Higher standard of living, Increased tax revenue, Higher employment
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Name 3 disadvantages of economic growth
Inflation, Greater inequality, Environmental cost (negative externalities)
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What are the three ways to measure the size of an economy?
GDP, GNP, NI
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What is property income from abroad?
Interests, profits and dividends flowing into the country, minus those flowing out
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Methods of calculation?
3
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What are the three limitations of NI?
Indicates growth not welfare, Offset by population growth, Ignores distribution of income
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What are the three main components of the HDI?
Education, Life expectancy, Income
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What does a low HDI index indicate?
Low standard of living
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How does the misery index work?
The sum of the unemployment rate plus inflation
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Other cards in this set

Card 2

Front

Name 3 causes of a recession (Demand-side)

Back

Higher interest rates, Deflation, Falling consumer confidence

Card 3

Front

Name 3 causes of a recovery (Demand-side)

Back

Preview of the front of card 3

Card 4

Front

Name 2 causes of a recession (Supply-side)

Back

Preview of the front of card 4

Card 5

Front

Name 2 causes of a recovery (Supply-side)

Back

Preview of the front of card 5
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