Notesale: Turn your study into money

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Macro Economics
Four Main Objectives:
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Full Employment (or low unemployment)
Low inflation and price stability
Positive GDP Growth (High standard of living for citizens)
Balanced Trade (Balance of payments) with overseas economies (International trade)
ALSO:

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Fair income redistribution
Sustainable economic growth & development (instead of just GDP growth)
Development occurs when human well-being improves:
o Reducing poverty
o More equal distribution of income
o Promoting sustainable economic activity by not wasting scarce resources

Standard of living
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Life expectancy - Both
Qualifications – Individual
GDP per Captia – Individual
Population – Government
Unemployment percentage - Government
Homeowners vs
...
)
Inflation
CPI – Consumer prices Index
RPI – Retail prices index
Economic Growth
GDP growth = 0
...

 Helps to achieve economic growth
 Don’t have to pay out benefits
 Reduces costs to government
 Well trained labour from other
countries
 Maintains value of pound sterling
 Increasing purchasing power abroad
 Consumer confidence (if I buy
something, I don’t want it to go down
in price the next day)
 Don’t want to depend on other
countries (Oil, food)
 Unbalanced trade reduces money in
the economy, reducing economic
growth

Q1 of 2008 was positively influenced by real GDP growth, and in the second quarter, it dramatically
declined
...
5% change in
real GDP, the lowest point in the range
...
The most stable point is between Q2
of 2013 and Q2 of 2014
...
1% and 0
...

X is Maximum when…
...

X is minimum when… Y is minimum when…
Biggest change/difference between X & Y is…
The Graph Peeks at…
...


The inflation rate ranges between 2

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