IAS ECON - COMMON EXAM REVISION (MACRO)

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

• The​ ​market​ ​value​ ​of​ ​all​ ​final​ ​goods​ ​and​ ​services

• A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”

If people are made unemployed because of a fall in aggregate demand this is known as:

• Cyclical unemployment

• Frictional unemployment

Inflation:

• Always reduces the cost of living

• Reduces the purchasing power of a currency

An increase in costs will

• Shift aggregate demand

• Shift aggregate supply

The total value of all final goods and services produced in a country in a given year.

• Gross Domestic Product

• Consumer Price Index

• Inflation

• Unemployment

A general increase in prices across an economy.

• Gross Domestic Product

• Consumer Price Index

• Unemployment

• Inflation

Type of unemployment that occurs as a result of harvest schedules, vacations, or when industries make seasonal shifts in their production schedules.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Uneployment

• Cyclical Unmeployment

Type of unemployment that occurs when workers skills do not match those needed for the jobs available.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

• Economic Cycle

• Circular Flow

• Equilibrium

• GDP

The use of government spending and revenue collection to influence the economy.

• Monetary Policy

• Fiscal Policy

• Congressional Policy

• Executive Policy