Wider economics

Question 1

What is the economic cycle?

Answer 1

The Economic cycle is the overall state of the economy as it goes through 4 stages.

Question 2

Describe the economic cycle

Answer 2

1. Boom

Unemployment low
Inflation high
Fiscal revenue higher
Consumption high
Investment high

2. Downturn

Cyclical unemployment rises

3. Recession
4. Recovery

Question 3

What affects the economic cycle?

Answer 3

1. Unemployment
   
   2. Inflation
   3. Fiscal
   4. Revenue
   5. Consumer spending
   6. Investment
   7. Inequality

Question 4

What is underemployment?

Answer 4

Underemployment is a measure of employment and labour utilization in the economy that looks at how well the labour force is being used in terms of skills, experience, and availability to work.

Question 5

What is the labour force?

Answer 5

The labour force is the total number of those employed and unemployed in relation to the total population.

Question 6

What is unemployment?

Answer 6

Unemployment is people able, available and willing to find work and actively seeking work but are not employed.

Question 7

What is the balance of payments?

Answer 7

a. Trade in goods (X-M)

b. Trade in services (X-M) = balance of trade

c. The net flow of investment, income moving from host country to source country.
Remittances, where money is earned abroad and sent home.

Question 8

What is inflation?

Answer 8

The gradual sustained rise in prices across a country.

Question 9

What are the different types of inflation?

Answer 9

Cost push inflation

Demand pull