Studied by 0 people
Expansion
the economy grows, jobs increase, and consumer spending rises.
Peak
The highest point of the business cycle before economic slowdown occurs.
Recession
A phase where the economy shrinks, leading to job losses and decreased consumer spending.
Trough
The lowest point of the business cycle before recovery begins.
what are the phases of the business cycle?
expansion, peak, recession and trough
Causes of Business Cycle
Factors like spending and consumer confidence
give an examples of an economic event
Great Depression- severe economic recession
Key Features of Recessions
High unemployment, low spending, and falling prices (deflation).
Key Features of Booms
Low unemployment, high spending, and rising prices (inflation).
Demand
the amount of a product people want to buy at a certain price.
Law of Demand
when prices go down, people buy more.
when prices go up, people buy less.
Supply
The quantity of a product that businesses are willing to sell at a given price.
Law of Supply
when prices go up, businesses sell more.
when prices go down, businesses sell less.
Equilibrium
The point where the demand and supply curves meet. This is where the price and quantity are balanced.
Price Mechanism
the way supply and demand determine prices in the market.
Factors Affecting Demand
Income, tastes, population, substitute goods, complementary goods, and expectations.
Factors Affecting Supply
Efficiency, production costs, weather, and the number of suppliers.
Supply Table
A table showing how much a seller is willing to sell at different prices.
Demand Table
A table showing how much a buyer is willing to buy at different prices.
Supply Curve
slopes upward, showing that sellers are willing to sell more at higher prices
Demand Curve
slopes downward, showing that buyers are willing to buy less at higher prices
Standard of Living
A measure of how well individuals are living.
GDP per Capita
Total value of goods and services produced per person.
Economic Growth
Measures the increase in production of goods and services.
Income Distribution
Measures how evenly income is distributed among people.
Environmental Sustainability
Measures how well the economy can meet current needs without harming future generations.
Unemployment
The condition where individuals who are willing and able to work cannot find jobs.
Labour Force Survey
A method used to measure unemployment by interviewing individuals aged 15 and over.
Cyclical Unemployment
Unemployment that occurs during economic downturns due to decreased spending.
Structural Unemployment
Results from changes in technology or production methods.
Seasonal Unemployment
Job losses that occur due to seasonal fluctuations in demand.
Frictional Unemployment
Temporary unemployment that occurs when individuals are between jobs.
Consumer Price Index (CPI)
used to measure inflation
calculates the average change in prices of a basket (food, clothing, housing etc.) of goods and services
Demand-side Inflation
excessive demand for goods and services.
Supply-side Inflation
increased production costs.
Impacts of Inflation
Reduced competitiveness, undermined economic growth, and affected income distribution.
Reasons to Leave Home
Pursuing education, employment, seeking independence, or family disagreements.
Types of Accommodation
Options include renting an apartment, share housing, or university colleges.
Key Considerations for Leasing
Understanding rights, reviewing agreements, and communicating with landlords.
Establishment Costs
One-time expenses when moving into a new place
Ongoing Costs
Recurring expenses
Financial Strategies
Monitoring spending, budgeting, and shared living arrangements to manage finances.
Tax File Number (TFN)
A unique identifier required for tax purposes in Australia.
Major Purchases
Considerations for buying mobile phones and cars, including costs and financing options.
Payment Methods
Various ways to pay for purchases, including cash, credit, and lay-by options.
Consumer Protection
Laws that safeguard consumers from unfair practices and ensure rights are upheld.
Note 
Flashcard (72)