economic indicators and population Flashcards
define inflation
a persistent rise in general price levels over a period of time usually one year
methods to calculate inflation rate
cpi and rpi
differences between cpi and rpi
the items used in calculation: rpi includes cost of housing
the population base: rpi excludes extremes
the method of calculation: rpi is calculated using an arithmetic mean whereas cpi is calculated using a geometric mean
list causes of inflation
cost-push
demand-pull
monetary cause of inflation
imported inflation
define deflation
a persistent fall in the general price levels over a period of time
two causes of delfation
increase in aggregate supply(benign)
fall in aggregate demand(malign)
consequences of deflation
surge in unemployment increased bankruptcies fall in wealth increase in debt lower consumer confidence
list 4 changing patterns of employment
working sector
delayed entry to workforce
ageing population
flexible working patterns
9 types of unemployment
frictional seasonal technological regional structural voluntary youth classical cyclical
policies to deal with unemployment
fiscal
monetary
protectionist
supply side policies
components of gdp
c+i+g+x-m
define economic growth
an increase in the real gdp per capita over a period of time usually one year
causes of economic growth
factor endowments
investment
labour force
labour productivity
list three advantages of economic growth
increase in tax revenue
increase in standard of living
increase in employment
4 disadvantages of economic growth
environmental consequences
inflationary pressure
wealth disparity
resource depletion
