Week 1

Question 1

Economic growth

Answer 1

A dynamic change in the level of an economy’s output.

Question 2

Business cycle

Answer 2

Shows the periodic fluctuations of national output. Periods of rapid growth are followed by periods of low growth or even decline in national output.

Question 3

Short-run economic growth

Answer 3

Involves understanding the determinants of the business cycle

Question 4

Long-run economic growth

Answer 4

involves understanding a country’s capacity to produce. Sustained LR growth requires the economy’s capacity to produce to increase.

Question 5

Unemployment

Answer 5

Those of working age who are without work, but who are available for work at current wage rates

Question 6

Labour force definition

Answer 6

employed + unemployed

Question 7

What’s the International Labour Organisation (ILO)?

Answer 7

a United Nations agency that advocates for decent work, human and labor rights, and social justice.

Question 8

Inflation

Answer 8

a general rise in prices throughout the economy, measured by CPI.

Question 9

CPI

Answer 9

a measure of the average change over time in the prices paid by consumers for a representative basket of consumer goods and services.

Question 10

Balance of payments (BoP)

Answer 10

A record of the country’s transactions with the rest of the world:
- shows the countries debts and credits to/from other countries.
- the sale of exports / purchases of imports or anything else that earns foreign currency
- if a country spends more foreign currency than it earns its BoP is in a deficit, their currency will depreciate in the long-term.

Question 11

Financial Stability and well-being as a macroeconomic issue.