Key Indicators
Calculates a collection of prices for a common basket of goods. It measures inflation.
What is the Consumer Price Index?
Savings, Imports and Taxes in the circular flow of income are....
What are leakages?
The phase in the business cycle characterised by increasing inflation, spending, GDP and employment.
What is an expansionary phase?
A set of tools used by the RBA to control the overall money supply and promote economic growth and employ strategies such as revising interest rates
What is monetary policy?
Government spending, exports and investment in the circular flow of income....
What are injections?
A type of short-term unemployment that occurs when workers look for new employment or transition out of old jobs and into new ones.
What is frictional unemployment?
It focuses on basic material factors such as income, gross domestic product (GDP), life expectancy, and economic opportunity, standards of healthcare, job quality, conditions of work, education and literacy.
What are living standards?
The phase in the business cycle characterised by decreasing GDP, decreasing inflation, reduced spending and increasing unemployment.
What is the contraction phase?
A situation that occurs when government income (taxes) exceeds expenditures.
What is a budget surplus?
The type of unemployment results directly from cycles of economic upturn and downturn. Unemployment typically rises during recessions and declines during economic expansions.
What is cyclical unemployment?
The total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.
What is GDP?
It measures income inequality in a nation.
What is the Lorenz Curve?
A high point in the business cycle the government tries to level out to prevent too much growth.
What is a peak?
The policy of the government to deliberately change the tax rates and government spending to manage aggregate demand and achieve macroeconomic objectives
Savings, Imports and Taxes in the circular flow of income are....
What are leakages?
The percentage of interest relative to the principal. It is either what lenders charge borrowers or what is earned from deposit accounts.
What are Interest rates?
The combined debt of all people in a household, including consumer debt and mortgage loans. High levels can lead to a decrease in standard of living.
What is household debt?
A low point in the business cycle where the government tries to prevent a recession, prices have bottomed out and unemployment is high.
What is a trough?
A form of macroeconomic policy that seeks to encourage economic growth by increasing aggregate demand. This is done by decreasing taxes and/or increasing spending.
What is expansionary fiscal policy?
A social science that focuses on the production, distribution, and consumption of goods and services. It is primarily concerned with analyzing the choices that individuals, businesses, governments, and nations make to allocate limited resources.
What is Economics?
A general increase in prices and fall in the purchasing value of money:
What is inflation?
Founded by the OECD it includes 11 indicators to measure quality of life.
What is the better life index?
A very severe recession. Unemployment is very high and has a significant effect on the economy.
What is a depression?
When the government either cuts spending or raises taxes. It reduces the amount of money available for businesses and consumers to spend.
What is contractionary fiscal policy?
A global event that resulted in a sharp decline in GDP and increase in savings, followed by a sharp increase in spending and prices/inflation.
What is COVID 19?