Living standards definitions

Question 1

Material living standards

Answer 1

The ability of an individuals to access goods and services.

Question 2

Non-material living standards

Answer 2

Looks at the wider range of the factors other than purchasing power that affect a person’s well being and thus their overall quality of life.

Question 3

Economic growth

Answer 3

Any increase in the amount of national production that has occurred over time. (Goal 3 - 3.5%)

Question 4

The business cycle

Answer 4

Looks at the fluctuations in growth output that take place over an extended time frame.

Question 5

Aggregate demand

Answer 5

The total expenditure on new final Australian made goods and services.

Question 6

Aggregate supply

Answer 6

The total volume of goods and services that all suppliers have produced and supplied over a period of time.

Question 7

Gross domestic product (GDP)

Answer 7

The final market value of all goods and services produced in Australia in a given time period

Question 8

Full employment

Answer 8

The condition in which virtually all who are able and willing to work are employed. (4.5 - 5%)

Question 9

Inflation

Answer 9

When the price rises outweigh the price falls to deliver a sustained increase in the average price level over time. (Goal 2-3%)