objectives of goverment policy (10.1.1)

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  • Created by: lee42
  • Created on: 02-07-19 09:51
what is a current account?
The current account records the payments for goods and services, plus investment income and transfers, between an economy and the rest of the world.
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What are the objectives of goverment policy?
stable current account, sustainable fiscal/.national debt, low income inequality, sustaiable economioc growth, low unemployment/price stability
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what is a fiscal deficit?
its when goverment spends more than it receives in tax revenue in a given period
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how is inequality measured?
gini coefficient
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how is price stability measured?
consumer price index
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what is the negative impact of the goverment reducing unemployment by spending on training
in short run it would increase fiscal deficit because increase goverment spending
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what is the negative impact of reducing inequality by raising tax on rich?
This will disincentivise workers
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what is the negative impact of high economic growth?
High economic growth could lead to pressure on resources so price began to rise fast
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stable current account, sustainable fiscal/.national debt, low income inequality, sustaiable economioc growth, low unemployment/price stability

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What are the objectives of goverment policy?

Card 3

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its when goverment spends more than it receives in tax revenue in a given period

Back

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Card 4

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gini coefficient

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Card 5

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consumer price index

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