Economic Growth
What is economic growth?
An increase in output / GDP.
What does inflation mean?
Prices are rising.
What is unemployment?
People who want a job but cannot find one.
What is a visible export?
A physical good sold abroad.
: Name one factor that increases economic growth.
More investment / more workers / better technology.
Which index measures inflation?
CPI
What type of unemployment happens when workers move between jobs?
Frictional.
What is an invisible import?
A service bought from abroad
In which phase of the economic cycle does GDP fall?
Recession
One cause of demand-pull inflation?
Too much spending
What type when industries decline permanently?
Structural.
What does a current account deficit mean?
Imports > exports.
Give one problem of very fast growth.
Inflation / pollution / resource depletion.
One cause of cost-push inflation?
Higher wages / higher raw material costs.
One problem of unemployment for workers?
Low income / stress.
What happens to exports if the currency depreciates?
They become cheaper.
What does GDP measure?
The total value of goods and services produced.
What happens to purchasing power during inflation?
It decreases
One problem for the government?
More benefits / less tax.
Name one reason for a current account deficit.
High imports / strong currency / low competitiveness.