Phases of the Business Cycle
GDP & Economic Growth
Random pub trivia
Economic Indicators
Monetary/Fiscal Policy
Economic History
100
An expansion is the phase between _________ and _________ of the business cycle
Trough, Peak
100
Define GDP
The sum total value of all final products produced in an economy over one year.
100
Roman soldier who led 80-100 men unit in a Roman army. Also the name of the British tank pictured below:
Centurion
100
What do the different types of indicators tell us? Why should we care?
It lets us know where on the business cycle we are, where it may lead in the future. Allows decisionmaking by policymakers.
100
What is the RBA inflation target?
2-3% inflation
100
Father of Modern Economics, wrote the book "Wealth of Nations". Is considered the first Classical economist.
Adam Smith
200
Why does economic growth begin to slow at the peak?
The economy is operating at or above full employment (100) > No labour resources to expand production, high inflation due to rising labour costs. (100)
200
GDP adjusted for inflation and divided by the population
Real GDP Per Capita
200
The number of chambers in a human heart
4
200
Give 2 examples of leading indicators (100 per)
Share prices
Building approvals
Levels of inventory held
Employment vacancies
200
Who controls Australia's monetary policy
The Reserve Bank of Australia
200
Put forward the idea that goods that produce negative externalities should be taxed to account for the deadweight loss.
Last name only is okay.
Pigou (Pigouvian Taxes)
300
How do economists define recession
Two consecutive quarters of negative economic growth
300
What is the expenditure formula for GDP
GDP= C + I + G + (X-M)
300
Most common name in the world
Muhammed
300
Why is gold a leading indicator
People buy gold when they think the economy will crash (low investor confidence)
300
Why would the reserve bank raise interest rates?
To curb inflation, increase consumer savings rates, reduce investment in the economy.
300
Lenders gave out risky NINJA loans (no income, no job, assets), banks had too much confidence in the housing market, causing major financial institutions to fail. The main focus of the film The Big Short.
2008 GFC (Global Financial Crisis)
400
List 4 Characteristics of a trough (100 per)
Low levels of spending
High levels of unemployment
Low participation
Business in survival mode
Low demand
Prices fall
Bankruptcies
400
What is Australia's GDP in 2024? (In USD)
$1.75 Trillion USD
400
This Australian Prime Minister went swimming one day and was never heard from again.
Harold Holt
400
Give two examples of a lagging indicator
unemployment
Wages
inflation
interest rates
400
List the main levers (methods of control) of both Monetary and Fiscal Policy (200 Each)
Monetary - Interest rates
Fiscal - Gov spending/taxation
400
The main economic theorists behind communism. Wrote Das Kapital, and The Communist Manifesto
Karl Marx, and Friedrich Engels
500
High interest rates during what phase may result in falls in both consumption and investment spending causing a decline in economic activity.
Boom phase
500
What is Australia's GDP per capita? (In AUD)
$66,250 AUD
500
The only insect that can turn it's head 180 degrees (independently of the rest of it's body)
Praying Mantis
500
What are the three types of economic indicators, and explain what they are.
Leading (Before) indicates that GDP will change in a direction
Lagging (After) moves after GDP change, confirms truth
Concurrent (During) moves in line with GDP change
500
Why do democracies struggle to do fiscal policy "correctly"
Raising taxes is deeply unpopular and will lose you elections
500
The major contraction in the global economy that caused great strife across the world in the early 20th century, between WW1 and WW2
The Great Depression