1st test on macroeconomic objectives and cycle

Question 1

what are the macroeconomic objectives

Answer 1

sustainable economic growth(GDP)
low stable inflation
low unemployment
strong balance of payments(exports - imports)

Question 2

what are the characteristics of a boom

Answer 2

high profits
high GDP
low unemployment
high confidence
demand inflation(prices rise from high demand)

Question 3

what is a recession

Answer 3

2 consecutive quarters of negative growth

Question 4

what is an economic cycle

Answer 4

the fluctuation of economic activity over a long period of time

Question 5

what are some shocks to the demand and supply side

Answer 5

demand - global pandemics (people stopped working)
supply - war(Ukraine - wheat)