Economics Unit 4 - Economic Indicators

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What is a recession?
Negative economic growth for 2 consecutive quarters
1 of 17
Name 3 causes of a recession (Demand-side)
Higher interest rates, Deflation, Falling consumer confidence
2 of 17
Name 3 causes of a recovery (Demand-side)
Lower interest rates, Inflation, Rising consumer confidence
3 of 17
Name 2 causes of a recession (Supply-side)
Unemployment, Higher commodity prices
4 of 17
Name 2 causes of a recovery (Supply-side)
More employment, Lower commodity prices
5 of 17
Name the 4 factors that determine the long term trend growth (TTIE)
Technology, Training, Investment, Education
6 of 17
What does exogenous mean?
Anything outside the components of AD
7 of 17
What are the three factors that increase long term aggregate supply
Higher productivity, Increased supply of factor inputs, Technological advances
8 of 17
Name 3 advantages of economic growth
Higher standard of living, Increased tax revenue, Higher employment
9 of 17
Name 3 disadvantages of economic growth
Inflation, Greater inequality, Environmental cost (negative externalities)
10 of 17
What are the three ways to measure the size of an economy?
GDP, GNP, NI
11 of 17
What is property income from abroad?
Interests, profits and dividends flowing into the country, minus those flowing out
12 of 17
Methods of calculation?
3
13 of 17
What are the three limitations of NI?
Indicates growth not welfare, Offset by population growth, Ignores distribution of income
14 of 17
What are the three main components of the HDI?
Education, Life expectancy, Income
15 of 17
What does a low HDI index indicate?
Low standard of living
16 of 17
How does the misery index work?
The sum of the unemployment rate plus inflation
17 of 17

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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