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Revision (Economic Performance (Inflation (The general increase in price…
Revision
Economic Performance
Inflation
The general increase in price of goods and services and the decrease in purchasing power.
Measured by the price of a basket of goods.
Cost push is that cost of production increases as price of goods and services increase.
Demand pull is the increase in prices due to the level of demand increasing.
Effects
Your income is worth less.
Business
Decrease in spending as prices increase.
Also results in an increase in cost of production.
GDP is the total amount of goods and services produced by a country.
Per Capita is the amount of goods and services produced by an individual.
Economic growth is the growth of GDP per year.
Problems
Cash jobs
Volunteer
Home grown product
Distribution of income
Unemployment is someone over the age of 16 who is able and actively working for work.
Types of unemployment
Seasonal
Cyclical
Structural
Frictional
Effects
No income
Loss of money for government
Interest rates
Balance of payment
Exchange rate
Government
Goals
Stable price
Full employment
Sustained growth
Distribution of income
Monetary policy
The RBA (Reserve Bank of Australia) alters interest rates.
Fiscal policy (budgetary policy)
Taxation
Government spending
Migration
Workplace Productivity
Being productive in the use of resources.
Deregulation
Making business regulations easier.
Skills and workplace training
Living Standards
Non-material well being of the population.
Health
Education
Crime/security
Distribution of wealth and income.
Gini Coefficient
0 = equal
1 = unequal
Lorenz Curve
Business Productivity
Benefits
Performance appraisal
Professional development
Flexibility