Macroeconomic Aims
True or False: Long-run economic growth means to make more goods and services each year.
Flase
True or False: Deficit describes a country earning money more than spending money.
False
True or False: Narrow money means cash and current accounts.
True
True or False: Disinflation means no inflation.
False
True or False: Big inflation and deflation are bad for a country.
True
Fill in the blanks: Labour force _______ (includes/doesn't include) students.
doesn't include
Fill in the blanks: Governments are supposed to fix market failures, because ______.
there is little benefit to the company
Fill in the blanks: Governments need to tell banks how much cash they must keep, this is called _____.
Reserve requirements.
Fill in the blanks: _________ is used to measure inflation.
price index
Fill in the blanks: Bad inflation comes from _____ demand.
falling
Fill in the blanks: A _____ inflation rate is better than ______ inflation rate.
small;big
Suppose you are the president of a country, which kind of tax will you take if people in your country are either very rich or very poor.
Progressive taxes
What are the uses of rising interst rates.
Slow spending, increase saving.
Fill in the blanks: Inflaiton ______ purchasing power.
lowers
What are good deflations comes from?
better techniques and productivity
What does "balance of payments stability" means?
how much a country earns form experts should match how much it spends on import.
Fill in the blanks: Governments usually tax more on cigaretts and alcohol, because they want to ___________.
discourage bad goods
Why monetary policies are important?
They can affect household spending,business investment and exchange rate.
Name 1 cause of inflation.
Demand pull/Cost push/Monetary
Fill in the blanks: Governments move money from richer people to poor people by ______ and ______.
taxes;benefits
Why is redistribution of income important?
To reduce poverty gaps.
Why does governments tax on international goods?
To protect local firms.
What effects there will be if reserve requirements lowers?
Banks have more funds available to lend.
How will you respond if there is a serious inflation in your country?
Raise interest rates/Reduce spending.
Name 1 example of benefit.
free or cheap healthcare/eduaction...