Vocab Flashcards

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1
Q

volatile market

A

high price fluctuations

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2
Q

volatile

A

mining is a volatile industry because the price changes frequently for the resource.

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3
Q

recession

A

two consecutive periods of neg economic growth

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4
Q

capital goods

A

items that have not been produced for immediate consumption but will be used for the prod of other goods eg. scientific research.

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5
Q

tariff

A

tax on importing

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6
Q

purchasing power

A

financial ability to buy G&S

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7
Q

equilibrium

A

occurs in circular flow of income when the sum of all leakages is equal to sum of all injections into an economy.

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8
Q

3 leakages

A

savings, taxation, imports

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9
Q

3 injections

A

gov spending, investment, exports

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10
Q

business cycle

A

fluctuations in the level of econ growth due to domestic or international factors.

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11
Q

subsidy

A

gov funds something

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12
Q

social security

A

Aus = social welfare

(in UK) monetary assistance from the state for people with inadequate or no income.

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13
Q

equities

A

shares

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14
Q

quantitative easing (QE)

A

printing money to increase spending, money flow.

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15
Q

basis point

A

percentage. Used in expressing interest rate

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16
Q

quantitative tightening (QT)

A

decrease liquidity in money

17
Q

full employment

A

unemployment rate <5%.

leads to boost in wages for competition

18
Q

inflation goal and why

A

Increase 2-3%. If > wages can’t keep up.

If< not growing in efficiency and GDP with increasing population

19
Q

bull market

A

stocks increase, share prices increase, encouraging buying.

20
Q

overnight lending rate

A

loans between banks

21
Q

real wages

A

take into account interest rates

22
Q

nominal wages

A

stated at value

23
Q

monetary policy

A

interest rates set by RBA or Federal reserve

24
Q

fiscal stimulus

A

increase in public spending, tax decrease

25
Q

dovish

A

against rasing interest rates

26
Q

aggregate demand

A

total demand

27
Q

equity market

A

share market

28
Q

cash rate

A

set by RBA

29
Q

interest rate

A

set by each bank

30
Q

collective agreement

A

employee and boss negotiate individual wage