Government Objectives Key Terms

A brief set of flashcards to understand the economic objectives of the government

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  • Created by: George
  • Created on: 22-09-13 18:50
Define: Objective
An aim of an individual or government that they wish to achieve
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Define: Economic growth
The gradual increase in national output per year measured by changes in GDP
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Define: GDP
Gross Domestic Product that measures the value of all the goods and services produced by an economy over a specific time period
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Define: Inflation
The increase in the average price level with a target of 2% +- 1%
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Define: CPI
Consumer Price Index which measures the rate of inflation and excludes housing related costs
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Define: RPI
Retail Price Index which measures the rate of inflation and includes housing related costs
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Define: Demand Pull Inflation
When aggregate demand increases to a greater extent than firms can increase aggregate supply causing excess demand and inflation of prices
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Define: Cost Push Inflation
The increase in the cost of production for a firm due to increases in the cost of economic resources causing increasing prices to maintain a firm's profitability
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Other cards in this set

Card 2

Front

The gradual increase in national output per year measured by changes in GDP

Back

Define: Economic growth

Card 3

Front

Gross Domestic Product that measures the value of all the goods and services produced by an economy over a specific time period

Back

Preview of the back of card 3

Card 4

Front

The increase in the average price level with a target of 2% +- 1%

Back

Preview of the back of card 4

Card 5

Front

Consumer Price Index which measures the rate of inflation and excludes housing related costs

Back

Preview of the back of card 5
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Comments

DiamondAlf

Report

THEY ARE NOT IN THE SPEC NOOB

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