econ cycle test Flashcards
what are injections into circular flow
exports
gov spending
investment spending
what are leakages into the circular flow
imports
taxation
savings
what happens when injections exceed leakages
increase in national income
economic growth
definition of AS
total output of goods and services that forms in an economy rate willing and able to supply at any given price level at a given time
What is demand pull inflation
when AD shifts
increase in GDP and GPL
income tax decrease
What happens in cost pull inflation
AS shifts
change in GDP AND GPL
how to find GNI
GDP + net income
inflation
sustained rise in economy’s price level
What’s deflation
sustained period where gpl is falling
What’s disinflation
fall of inflation but not sufficient to bring deflation
what does cpi do
tracks the changes in avg price levels of basket of goods
What does the Labour force survey do
measure of unemployment based on number of people who are claiming benefits
What does the claimant count do
measures unemployment by counting the number of job seekers allowance and those looking for works
