Macroeconomic Revision Cards

National Income

GDP

Trade deficit

Balance of payments

Economic growth

Inflations

Index numbers and formula.

The circular flow of income

The actual circular flow

If injections are bigger than withdrawals.

If leakages exceed injections

Macroeconomic equilibrium

Macroeconomic disequilibrium.

Limitations of using GDP to measure standard of living

Other ways of measuring standard of living (apart from GDP)

There are three ways of measuring GDP

Nominal GDP

Real GDP

GNP

Net

Net income

Remittances

PPP
Purchasing Power Parity

Features of PPP

Productive efficiency

Allocative Efficiency

Inside the PPF

Points outside the PPF

PPF

AD

The real balace effect

Aggregate supply

Short Run

SRAS

Long run

LRAS

SRAS

Keynesian economic

Fuundemental determinants of LRAS

MPC

MPS

MPC/MPS

The multiplier effect

The accelerator effect

Economic cycle

BOOM

Slowdown

RECESSION

Slump

RECOVERY

Output gaps

Negative output gap

Positive output gap

The multiplier effect will be high when...
(4 things)

Time Lag

The multiplier effect will be lower when...

Unemployment

Economically active

Econmically inactive

There are two ways to measure unemployment

Why is unemployment bad?

What is supply side unemployment?

What is demand side unemployment

Frictional unemployment

Structural Unemployment

Deman deficient unemployment

Seasonal unemployment

Real wage unemployment

Social Cost of unemployment

Youth unemployment

Labour scarring effect of unemployment

Advantages of unemployment

How to reduce DD unemployment

Policies to reduce seasonal unemployment

Policies to reduce real wage unemployment

Policies to reduce structural unemployment.

Policies to reduce frictional unemployment

Barriers to lowering unemployment

Which are the best policies?

Economic growth

Short term Economic Growth

Long term Economic Growth

Key drivers of Economic Growth

What happens when macroeconomic equilibrium in on LRAS?

Advantages of Economic Growth

Costs of Economic Growth

Limitations of Economic Growth

Inflation

How do we measure inflation (the % change in prices)

Limitations of CPI

What is RPI?

Causes of Inflation

What is demand pull inflation?

What is Cost push inflation?

Effects of inflation

Inflation and Unemployment

What is deflation?

What causes deflation?

Consequences of deflation

Poolicies to tackle inflation and deflation

What is the balance of payments?

What are inflows

What are outflows

What makes up the balance of payments?

What is the current account?

What does the capital account measure?

The current account

What is a current account deficit and surplus?

What causes a current account deficit?

The UK deficit

Does a deficit matter?

Policies to reduce the deficit

What are macroeconomic policies?

What are demand side policies?

What are the two main macroeconomic policies?

What is the fiscal policy?

What is the monetarist policy?

What are supply side policies?

What are the balance of payments?

What are inflows?

What are outflows?

What is the current account?

What is a current account deficit?

What causes a current account deficit?

What do we, as an economy need to do with services?

What are the problems of the UK deficit?

Does a deficit matter (BOP)?

Short term effects of a BOP deficit

Long term effects of a BOP deficit

Demand Side Policies to reduce a BOP deficit

Supply Side Policies to reduce deficit

What are the key roles of the fiscal policy?

Why is tax a good thing?

Direct Tax

Indirect Tax

Progressive tax

Proportional tax

Regressive Tax

What is an expansionary policy