Macro Flashcards
1
Q
Supply side policies
A
Education and training Govt assistance (corp tax cut) Minimum wage Privatisation Deregulation Reduce direct taxes = incentive
2
Q
Consequences of economic growth
A
^ living standards
Poverty reduction
Environmental change
Opportunity cost
3
Q
Consequence of inflation
A
Shoe leather Menu costs Fiscal drag Inflationary noise Lose competitiveness Re dust of income
4
Q
Unemployment
A
Cyclical - demand deficienct
Structural - industry or Geo
Frictional - search or seasonal
5
Q
Consequences of unemployment
A
Lost output
Loss of tax revenue
Less govt spending budget
Cost to unemployed
