Macroeconomics Flashcards
What is macroeconomics
The study of the economy as a whole
Name the aggregate indicators
GDP
GNP( gross national product)
What is the calculation for Gross national product (GNP)
GDP + net income from abroad
What is the circular flow of income
A theory that describes the movement of expenditure and income through the economy
What is the calculation for total expenditure
Total expenditure = consumption + (total injections - total withdrawals)
What are the macroeconomic objectives?
Stables prices Full employment Sustained growth External balance Protecting the environment
What are government policy instruments
Fiscal, monetary, direct
Name the 4 parts of the building cycle
Expansion, boom, recession, depression
Define recession
Decreasing the GDP for at least two quarters (six months)
What is the role of the government
A central role in promoting change in construction
What do the government do to regulate the industry
Inc/dec capital expenditure to boost/dampen activity
Tightening and loosening of planning restrictions
Define globalisation
The inter connectivity of multi national corporations
What does globalisation enable business’ to do
To separate different parts of the manufacturing chain and carry out actives in different locations around the world
Give information on the construction market of the global economy
Construction market has dramatically changed over recent years
New markets have opened up
Risk and diversification
