Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Macro- Cummisky > MACROECONOMICS > Flashcards

MACROECONOMICS Flashcards

1
Q

What is consumer confidence?

A

How average individuals feel about their current and future situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a tariff?

A

Tax placed on an imported good into a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What happens to the AD curve when AD rises?

A

AD shifts to the right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is debt (govt debt)?

A

The accumulation of previous deficits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the 3 ways of reducing the budget deficit?

A
  • Borrowing (bonds)
  • sell govt assets
  • Use surplus from previous years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the aggregate demand curve?

A

Shows the level of planned demand for real output consistent with a price level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What factors affects Imports as a component of AD?

A
  • exchange rates
  • domestic tarrifs
  • stage of econ cycle locally
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What factors affects exports as a component of AD?

A
  • Stage of the econ cycle abroad
  • tariffs
    •exchange rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What factors affects Investment spending as a component of AD? (4)

A
  • spare capacity in the economy
  • interest rates
  • Corporation tax rates
  • employment levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What factors affects Gov spending as a component of AD? (3)

A
  • unemployment levels
  • Tax revenue
  • population growth
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What factors affects consumption as a component of AD?

A
  • Interest rates
  • income levels
  • consumer confidence
  • stage of econ cycle
  • income tax rates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 3 ways of measuring national income?

A

Income, expenditure, output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the stages of the economic trade cycle?

A

Downturn, recession, recovery, peak/boom

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the factors for production?

A

Land, labour, enterprise, capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the income method?

A

Wages
Interest
Rent
Profits/dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the AD formula?

A

AD = C + I + G + (X-M)

17
Q

What is GDP?
Per capita?

A

Value of total output in a year
Divided by the population

18
Q

What is another term for total spending?

A

Aggregate Demand

19
Q

What are the 3 injections?

A

Government spending
Exports
Bank loans/investment

20
Q

What is nominal economic growth?

A

The percentage increase in GDP from one year to the next

21
Q

What is the expenditure method?

A

Government spending
Consumption
Investment spending
Net exports

22
Q

What is the real economic growth calculation?

A

Nominal - inflation

23
Q

What are the 3 withdrawals?

A

Taxation
Savings
Imports

24
Q

What does ceteris parabus mean?

A

All other things remain equal

25
Q

The demand for labour…?

A

Is derived from the demand for the goods and services that labour produces

26
Q

What are the signs of changes in the economic cycle?

A

Economic downturn
Increase in unemployment
Falling AD
Reduced output
Falling tax revenues
Increased govt spending on benefits
Stock market falls
Reduced cc.
Order books of firms get emptier

27
Q

What are the government economic objectives in a mixed economy?

A
  • Encouraging price stability
  • favourable balance of payments on the current account
  • Promoting steady economic growth
  • Redistributing income and wealth more equitably
  • Reducing national debt and govt budget deficit
  • Ensuring working population is productive.
28
Q

What is an exchange rate?

A

The value of one currency in terms of another

29
Q

What does SPICED stand for?

A

Strong
Pound
Imports
Cheap
Exports
Dear

30
Q

What does WPIDEC stand for?

A

Weak
Pound
Imports
Dear
Exports
Cheap

31
Q

What are shifts in short run aggregate supply?

A
  • input costs
  • Business taxes / subsides / imported costs
  • supply shocks
32
Q

What are some external factors affecting AS?

A
  • World oil and gas prices
  • energy prices /costs
  • other mineral /metal prices
  • foodstuff prices
  • import tariffs /quotas

Macro- Cummisky (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions