Module 12: Macroeconomics Flashcards
Governments typically have five key macroeconomic objectives:
- Economic Growth
- Low unemployment
- Low inflation
- Avoidance of balance of payments deficits and exchange rate problems
- Income distribution
What is Fiscal Policy?
Fiscal policy relates to government spending and taxation.
What is Monetary policy ?
Monetary policy attempts to control the economy using changes in the money supply, the availability of credit and interest rates.
inflation can be defined as
a sustained increase in the price level in an economy
What is Demand Pull Inflation?
Occurs when factors increase demand, shifting the demand curve to the right, causing both output and prices to rise.
What is Cost Push Inflation?
Arises when production costs, such as raw materials, increase, causing firms to supply fewer goods and services at higher prices.
What is the Circular Economy?
The Circular Economy emphasises: sustainability, waste reduction, and resource efficiency.
What are the 3 key principles of the Circular Economy?
1) Eliminate Waste and Pollution
2) Circulate Products and Materials (at their highest value)
3) Regenerate Nature
What is Planetary boundaries concept?
The planetary boundaries framework defines nine critical boundaries within which humanity can thrive without causing irreversible environmental changes
What is Doughnut Economics?
Promotes an economic model that balances social foundations and planetary boundaries.
It challenges the pursuit of endless GDP growth in favour of equitable and sustainable development.
What is Sustainable development?
Sustainable development seeks to meet present needs without compromising the ability of future generations to meet their needs.
What is Degrowth?
advocates for reducing overall economic production and consumption to achieve well-being and quality of life within ecological and social limits.
It challenges the idea of endless growth and calls for a more sustainable approach.
What is Transition Economics?
Focuses on shifting from high-carbon unsustainable systems to low-carbon, sustainable models
What is Regenerative Economics?
Aim to actively restore ecosystems and communities.
