economics catch up flash cards
what is importation and exportation I other word ?
importation is a leakage - spending money outside country
exportation - injection
these are flow of money into and out of economy
what is balance of payments
record of financial transactions between a country and others
demand pull and cost push inflation definition
demand-pull when AD shifts to the left causing inflation
cost push- cost of production increases, labour, raw materials …employees may demand higher prices for
Demand: When demand for a product or service increases, consumers are willing to pay more for it.
Supply: When supply is limited, consumers bid prices higher to get what they want.
subsidies
when a government pays a business to produce more goods and or services for lower prices to increase demand
what are the three types of unemployment
seasonal- need for workers changes through the year, due to wether tourism, holidays - can affect agriculture, tourism and retail workers
frictional- occurs when people may transition between jobs, lack of knowledge about job opportunities, considered natural part of healthy economy, is typically temporary
structural- mismatch between skills that workers have and skills required, caused buy change in tech, globalisation, policy or regulation and can last for years. Economists concerned about this unemployment
cyclical - Cyclical unemployment is unemployment that rises and falls with the business cycle
stagflation
situation where there is high inflation, low economic growth and high unemployment - not ideal circumstance
levy meaning
Impose a tax, fee or fine
what is regressive and progressive tax definition
A progressive tax increases with income, while a regressive tax decreases with income
