Business, Economy & Government

Demand Pull Inflation is

• caused by a rise in the cost of production of certain inputs, fuel, admin etc.

• Caused by an increase in the minimum wage

• caused when there is an increase in aggregate demand in the economy

• Inflation pulled in a level which is unsustainable and requires intervention by Revenue

Inflation is defined as

(a)  

Purchasing power of money does this in a period of inflation

• Increases

• Decreases

• Goes lateral

• Stays the same

Define Interest Rate

(a)  

If the Interest Rate Rises

• Debt capital is more costly

• Debt capital is less costly

• Debt capital is given back

• Debt capital is written off in the balance sheet

If interest rates are low

• There is no change in consumer spending

• There is less consumer spending

• There is more consumer spending

• There is more consumers saving

Full Employment is

• Everyone has a job

• Everyone available for work is employed

• Almost everyone in a country looking for work is able to find it

• No work available

The exchange rate is

(a)  

Capital Government expenditure is

• Wages paid to government employees

• Wages paid to teacher, firefighters and Gardi

• One-off spending by the government

• Regular day to day spending

Why does the Irish Government encourage entrepreneurship?

• Improve the balance of payments

• Increase Government Revenue

• Reduce Social Welfare

• Reduce reliance on Foreign Direct Investment

• All of above