Economic performance Flashcards
1
Q
What are the desired rates for GDP growth rates?
A
Sustainable growth rates are between 3.5% and 4.5%.
2
Q
What are the desired rates for dwelling approvals?
A
Monthly increases greater than 1% are considered to be substantial.
3
Q
What are the desired rates for retail sales?
A
Monthly increases greater than 1% are considered to be substantial.
4
Q
What are the desired rates for unemployments?
A
Full employment is referred to as the natural rate of unemployment. It is accepted by many economists to be a floor between 5–6%.
5
Q
What are the desired rates for inflation?
A
The Reserve Bank’s (RBAs) inflation target is 2–3% on average over the cycle.
6
Q
What are the phases of the trade cycle?
A
peak (boom) contraction (downswing) trough (recession) recovery (upswing) peak (boom)
