Objectives for govt and macroeconomic indicators Flashcards
1
Q
list the macroeconomic objectives
A
- inflation 2% +/- 1%
- economic growth at 2.25%
- favourable balance of payments
- fair distribution in income and wealth
- reducing govt budget deficit and the national debt
- full employment
2
Q
measuring the economy
A
total spending = total income = total output
3
Q
list the income method
A
- wages
- interest
- rent
- profit
4
Q
list the expenditure method
A
- govt spending
- net exports
- consumer spending
- investment spending
5
Q
list the output method
A
- primary
- secondary
- tertiary
- quaternary
6
Q
define index numbers
A
a way of measuring general movements in a set of variables that move in different directions by different amounts
7
Q
index number calculations
A
raw number divided by base year rate no. x 100
8
Q
define ceteris paribus
A
all over things remain equal
