1. Economic Environment Flashcards
1
Q
What are the main measures of inflation? (6)
A
RPI: includes housing costs
RPIX: RPI less mortgage payments
CPI: excl housing costs
CPIH: CPI + costs of home ownership eg council tax
Producer Price Index: raw material / manufacturing costs (leading indicator)
Average Weekly Earnings
2
Q
What are the 2 types of money supply?
A
M0 - narrow money - notes & coins
M5 - broad money - bank deposits & new money from loans
3
Q
What is the dependency ratio?
A
People of:
pension age : working age
4
Q
How can a BoP deficit be corrected? (4)
A
Encouraging exports and discouraging imports:
- borrowing foreign currency
- increase interest rates
- tariffs & quotas
- exchange controls
