Terms

Question 1

unicameral legislature

Answer 1

Parliament has only one law-making body
CCP = Chinese communist party p

Question 2

bicameral legislature

Answer 2

Parliament has only two law-making body
- senate
- house of representatives

Question 3

Macroeconomic conditions

Answer 3

• affect the national economy, including geopolitical problems and fiscals. The macroeconomic factors affecting business incorporate inflationary rate, unemployment rate, interest rate, and economic output, among others.

Question 4

Fiscal policy
- who is in charge
- what does it combat
- how does it do it

Answer 4

• government
• determines the way in which the central government earns money through taxation and how it spends money. To stimulate the economy, a government will cut tax rates while increasing its own spending; while to cool down an overheating economy, it will raise taxes and cut back on spending.
• aggregate demand for goods and services,
• employment,
• inflation,
• economic growth.
• lowering taxes to combat recession
• lower tax rates 30% tax for people earning $110 thousand instead of $120 thousand to combat high inflation
• less government spending to cool down the economy and combat high inflation rates

Question 5

monetary policy
- who is in charge
- what does it combat
- how does it do it

Answer 5

• the central bank (the Reserve Bank of Australia)
• To stimulate a faltering economy, the central bank will cut interest rates, making it less expensive to borrow while increasing the money supply. If the economy is growing too rapidly, the central bank can implement a tight monetary policy by raising interest rates and removing money from circulation.
• inflation
• expensive goods = GDP
• to combat high inflation it raises inflation rates meaning that people will have less money to spend as they will be spending more on their loans most likely home loans, making demand for goods go down causing business to make their prices cheaper therefore causing inflation to
• to combat low inflation in a recession it lowers inflation rates so that economic growth increases and so too does public spending, business spending and employment rates, boosting the overall economy.

Question 6

for graph explanantion
- when the economic growth rate is increasing
- when the economic growth rate is decreasing
- when the economic growth rate is the highest it can go
- when the economic growth rate is the lowest it can go

Answer 6

• upswing
• downsing
• peak
• trough

Question 7

what is gdp

Answer 7

gross domestic product
- total value of all goods and services produced within a country in a

Question 8

recession

Answer 8

when there are 2 successive quarters or six months where there is a decrease in real gdp

Question 9

the business cycle

Answer 9

the booms and busts of an ecomonomy = high inflation which turns into low inflation