Economic Growth
Gross Domestic Product - meaning the total amount of finished goods and services sold within an economy.
What does GDP stand for and mean?
A general rise in the overall price level.
What is inflation?
Government policy using spending and taxation to influence the economy.
What is fiscal policy?
GDP divided by population.
What is GDP per capita?
People willing and able to work but unable to find a job.
What is unemployment?
2-3%
What is the target of sustainable GDP growth?
This happens when aggregate demand rises faster than aggregate supply.
What is demand-pull inflation?
Policy set by the central bank that manages interest rates and the money supply.
What is monetary policy?
An index combining life expectancy, education, and income.
What is the Human Development Index?
Losing your job because a robot barrista was installed at the cafe which employed you.
What is an example of structural unemployment?
A lowering of the cash rate to boost borrowing and spending
What is expansionary monetary policy?
When prices rise because costs—like wages or oil—go up.
What is cost-pull inflation?
Cutting interest rates and increasing government spending are examples of this stance.
What is expansionary policy?
An approach that questions GDP as a welfare measure because it omits unpaid work, leisure, and ecological damage.
What is a critique of GDP as a measure of wellbeing.
Losing work as a ski instuctor during the summer months
What is an example of seasonal unemployment?
The aveage price of a basket of common products including food, energy, water, housing and medical expenses.
What is the CPI?
When demand outstrips supply (demand-push) or production costs rise due to a loss of competition or other event (supply-pull.
What are the most common causes of inflation?
When the government’s annual spending exceeds its revenue.
What is a budget deficit?
A measure of state legitimacy, factional divisions and violence, which indicates how fragile a nation is.
What is the Fragile States Index?
When workers’ skills no longer match available jobs.
What is structural unemployment?
A sustained increase in an economy’s GDP and production capacity due to capital accumulation or technology.
What are the long-term causes of economic growth?
The dangerous mix of stagnant output and rising prices seen in the 1970s.
What is stagflation?
The cash rate, which in turn sets interest rates on loans and savings.
What does the Reserve Bank of Australia have control over?
This measures a range of indicators including housing availability, income equlaity, social connections and
What is the Better Life Index?
Hardcore Unemployment
What is the term for someone who has been unemployed for a long period of time and has little desire to find a job?