Economic unit 3 AOS2 Flashcards
SSEG
Strong and sustainable economic growth – to seek the economy at a strong growth rate but not enough to create inflationary pressure, environmental degradation or external pressure (3-3.5%)
Aggregate supply
Ability and willingness of businesses to produce goods and services
External pressure
Lead to current account deficit
Environmental degradation
spillover effects on the environment, carbon emission and climate change
Full employment
To achieve the lowest rate of unemployment without causing excessive inflationary pressures
NAIRU (4%)
Non-accelerating-Inflation-Rate-of undemployment
Hidden unemployment
People who would work but is discouraged from looking for a job
Long term unemployment
people without work for over an year
Underemployed
People classified as employed but want more work hours
Frictional unemployment
when workers transition from one job to another
Cyclical unemployment
Unemployment caused by a downturn in the business cycle
Structural
unemployment is caused by a mismatch between skills firms need and the skills the labour market has
Unemployment rate
Unemployed/total labour force (employed+unemployed)
Participation rate
Labour force / working-age population
Underutilisation rate
Underemployed+unemployed/labour force
