Global Economy
The process by which trade, investment, finance, technology, and labour markets are increasingly interconnected across national borders.
Globalisation
Australia’s financial obligations to the rest of the world (foreign debt + foreign equity – Australian investment abroad).
Net Foreign Liabilities
When an initial increase in spending leads to a larger overall increase in national income.
Multiplier
Accounts held by the RBA between private banks
Exchange settlement accounts
As prices increases, demand decreases
Law of demand
Weighting of the Trial Exam
30%
The principle that a country should specialise in producing the goods or services it can produce at the lowest relative opportunity cost, leading to gains from trade.
Comparative Advantage
Long-term shifts in the patterns of production and employment across industries
Structural Change
A measure of the distribution of income within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).
GINI Coefficient
3 Objectives of Monetary policy
Price stability
Full Employment
Economic Prosperity
The demand for labour is derived from the demand for goods and services
Derived demand
Ms Blacker's favourite topic - must give textbook chapter & name
Ch 12 Environmental Sustainability
The total market value of goods and services produced by the residents of a country, regardless of where production takes place.
Gross National Income
Equation for Balance of Payments
CA + KAFA = 0
Graph that shows the trade-off between inflation and unemployment.
Phillips Curve
Redistribution of income
Reallocation of Resources
Stabilising economic activity
importance of government intervention in managing demand.
Keynesian Economic theory
The additional students in the Year 11 class
Oliver x 2
Srijan
Asher
Kael
Liam
Remy
Provides long-term loans and aid to support development and poverty reduction.
World Bank
A floating exchange rate that fluctuates due to changes in demand and supply but is influenced by central bank intervention.
Managed floating exchange (Dirtying the float)
The situation where an increase in aggregate demand leads to rising output and rising prices simultaneously.
Economic Development
The concept that short-term government borrowing can raise interest rates and reduce private investment, partially offsetting the intended stimulatory effect of fiscal policy.
Crowding-out effect
Pitchford thesis
Idea of "Consenting adults" which suggests that a country's current account deficit (CAD) is not a problem for external stability if it stems from private sector savings and investment decisions, not from government policy distortions.
Font used for powerpoints & handouts
Variations - Mixed/different fonts
The theory that in the long run, exchange rates adjust so that identical goods cost the same across countries once currency values are accounted for.
Purchasing Power Parity
Savings-Investment Gap, Trade Dependence, Foreign Investment Reliance
Structural factors contributing to CAD
3 conditions for external stability
Stability of the currency
Sustainability of external accounts
Serviceability of foreign liabilities
Phrase used to describe the objective when applying a tax such as the carbon tax
To 'Internalise the externality'
economic growth (%) > (Productivity Growth (%) + Increase in labour force (%))
Okun's law
The number this year group (you) is my graduating Economics class
23rd
A government policy or program designed to encourage domestic businesses to increase the sale of goods and services to overseas markets, often through measures such as tax concessions, grants, subsidies, or marketing assistance.
Export Incentives
Long-term shifts in the patterns of production and employment across industries
Protectionist policies
Multiplier equation + calculation of the new income level for Year 2, when equilibrium income in Year 1 is 4000 and govt spending increases by 300. MPC = 0.68
k= 1/MPS
Ans = $4937.50
A fiscal approach aimed at reducing public debt over time while maintaining economic growth, requiring trade-offs between short-term stimulus and long-term sustainability.
Fiscal Consolidation
Common resources are overused without regulation
Tragedy of the commons
Favourite economics meme
I will find you and teach you Economics