Macroeconomics year 1

What is macroeconomics?

What is a policy objective?

What are the 4 policy objectives?

What is short run growth?

What is long-run growth?

Short term vs long term?

What is full employment?

Why is minimising employment important?

What is inflation?

What is deflation?

What is disinflation?

What is balance of payments?

What are imports and exports?

Hence, what does a 'stable balance of payments mean'?

What is the biggest objective of the current government (Jan 2016)?

Why was George Osborne recently criticized (Jan 2016)?

What is a policy conflict?

What is trade-offs between policy objectives?

What are some examples of conflicting objectives?

What is the history behind the government objectives?

What are performance indicators?

How is economic growth measured?

What is real and nominal GDP and which is more reliable?

What is real GDP per capita?

What is a recession?

how is employment measured?

How is price stability measured?

How is balance of payments measured?

What is a balance of trade deficit and surplus?

What is an index number?

What is the base year?

How do they construct CPI?

What are some of the limitations of CPI?

What is national income?

What is the nominal national income?

What are the 3 ways of measuring national income?

What is the circular flow of income?

Describe what is happening

What effect does increasing savings have on economic activity and what is the effect of investment also?

Why are savings designated as a withdrawal in the circular flow of income and why is investment an injection?

What is an injection?

What is a closed and open economy?

What happens if:
withdrawals>injections
withdrawals< injections
withdrawals=injections

What happens if consumers and businesses are more confident about the future?

What is the Keynesian economic policies?

What is macroeconomic equilibrium?

What is aggregate demand and what is aggregate supply?

How can an increase in AD show reducing unemployment?

What is an economic shock?

Give an example of an economic shock

What is the equation for calculating AD?

What is consumption (C)?

What factors cause consumption to change?

What is a credit crunch?

How do they measure savings and what are the 2 types of measurement?

What factors impact savings?

What do firms invest in?

What factors influence investment?

Why do businesses invest in new machinery?

What is the accelerator?

What is economic activity?

What is the multiplier?

What effect does withdrawals have on the multiplier effect?

How do you work out the multiplier?

What does the impact of a change in a component of AD depend on? What do economists refer to?

What does the value of the multiplier depend on?

What is the marginal propensity to consume?

Does this vary?

What is the LRAS?

What causes the LRAS to shift?

What does the SRAS show?

What is the main determinant of SRAS?

What are examples of widespread changes in costs for businesses?

What are supply side influences?

What are demand side influences?

What is the trend growth rate?

What is the economic cycle/business cycle/trade cycle?

What are seasonal fluctuation?

What is the actual output and the trend level of output?

What is economic recovery?

What is economic performance?

What is an upswing and downswing?

What is a -ve and +ve output gap?

What is seasonal unemployment?

What is cyclical unemployment/ demand-deficit unemployment/ Keynesian unemployment?

What can the government do about this?

What is frictional/transitional/search unemployment?

What is geographical immobility of labour caused by?

What is occupational immobility of labour caused by?

What is structural unemployment?

What is deindustrialisation?

What can the government do to minimise frictional unemployment?

What can the government do to minimise structural unemployment?

What causes inflation?

What is demand-pull inflation?

What is cost push inflation?

Outline a situation that demonstrated cost-push inflation

What are the main causes of cost push inflation?

What factors cause the average wages to fall?

In terms of global commodity prices and inflation, what is the status of the economy?

What are deflationary policies?

Why is international trade good for consumers and businesses?

What are the four parts of the current account?

What are imports and exports monetary wise?

What is a current account deficit?

What is a current account surplus?

what is the balance of trade in goods?

what is the balance of trade in services?

what is net investment income?

what are transfers?

who does the government give money to?

what effect would a current account deficit or surplus have on the economy?

What factors influence the current account?

In a positive output gap, what would be the status of the indicators?

How about in a negative output gap?

How often would the government change their policy objectives?

What affect does higher interest rates have on consumption?

What affect does higher interest rates have on business investment?

What affect does higher interest rates have on the exchange rate?

What are policy instruments?

What is the monetary policy?

What is the Bank of England?

What is the monetary policy objective and what instrument is used?

How does the bank of England control the monetary policy?

What is expansionary monetary policy?

What is contractionary monetary policy?

What is the exchange rate?

What is quantitative easing briefly?

What is the fiscal policy?

How is a budget deficit expansionary?

What 3 main aspects of microeconomic policy can be achieved through government spending and taxation?

What are expansionary and contractionary fiscal policy?

What are supply side fiscal policies?

What does this depend upon?

What are some supply-side objectives?

What are the main UK taxes?

What are the main reasons for taxation?

What is direct tax?

What is indirect tax?

what are the main areas of government spending?

What is a progressive tax?

What is a regressive tax?

What is a proportional tax?

What is the difference between a budget deficit and national debt?

Why are they so bad?

What are supply side policies?

What are supply side improvements?

Are supply side policies popular?

What is the relationship between microeconomic policies and the macroeconomy?

What are the 2 broad approaches of supply side policies?

What is labour market supply side policies?

How can labour increase the capacity of our economy and our international competitiveness?

What is product market supply side policies?

What does privatisation mean?

What does deregulation mean?

What is marketization?

What are internal markets?

What are some other examples of industrial policies?

What is the impact of supply side policies?

What are supply side policies most needed for?