Macroeconomics Listing Points [Incomplete]

List the limitations of GDP as a measure of growth

Inflation, population changes, statistical errors, Home produced goods, hidden economy, living standards, external costs

List the impacts of economic growth

Employment, standard of living, poverty, prodcutive potential, inflation, environment

Reasons for demand-pull inflation

rising consumer spending encouraged by tax cuts or low interest rates, sharp increases in government spending, rising demand for resources by firms, booming demand for exports

Reasons for cost-push inflation

Increased resource costs/ Less supply, Increased taxation (VAT), Wage increases

List the impacts of inflation (Please, Why's Everything Up? My Salary Understands Big Cost Increases!)

Prices, wages, exports, unemployment (less of it), menu costs, shoe leather costs, uncertainty, business and consumer confidence, investment

List the impacts of unemployment (Obviously unemployed, please give this citizen (a) big salary)

Output (productive potential not fully exploited), use of scarce resources (waste of resources if unemployed), poverty, government spending on benefits, tax revenue, consumer confidence, business confidence (must pay redundancy money), society (crime, mood, e.t.c)

List the reasons for current acount deficits and surpluses (Quality products quietly push exports)

Quality of domestic goods, Price of domestic goods, Quality of foreign goods, price of foreign goods, Exchange rate between countries

List the impacts of a current account deficit + description

Leakages from the economy (money flows out to economy of overseas businesses, so domestic output and employment are threatened)

Inflation (face inflationary pressures if prices of imports rise)

Low demand for exports (reflects structural weaknesses in the economy)

Funding the deficit (Might require borrowing to pay for imports which can lead to long-term problems)

List the business activities that damage the environment

Mining, power generation, chemical processing, agriculture, construction

List the ways businesses damage the environment

Visual pollution, air pollution, water pollution, noise pollution

List the government intervention to protect the environment (tiny squirrels ready for picnic party)

Taxation, subsidies, regulation, fines, pollution permits, park provision

List the reasons to reduce poverty and inequality

Meet basic needs, Raise living standards, Ethical reasons

List the government intervention to reduce poverty and income inequality

Progressive taxation, redistribution through benefit payments, investment in education and healthcare

List the reasons why there are many different rates of interest

Competition, secure or not (mortgage), savers/not, credit card users

List the impacts of interest rate changes on the macroeconomic objectives + description for each

Inflation (When interest rates are higher, borrwing is likely to fall and the money supply grows less quickly. This will help to reduce aggregate demand and limit price increases)

Unemployment (When interest rates are cut there would be an increase in demand for loans increase. As a result, spending by households and firms increase. This would increase aggregate demand and firms would respond by producing more goods and services, which means they must recruit more staff)

Economic growth (Low interest rates encourage borrowing and GDP increases and therefore can help smooth out small variations in the economic cycle)

Current Account Balance (Low interest rates worsen current account because demand for imports increase although also exchange rate effect)

List the impacts of supply-side policies

Productivity, Total output

List supply-side policies that are implemented

Privatization, deregulation, education and training, policies to boost regions with high unemployment, Infrastructure spending, Lower business taxes to stimulate investment,