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5 Cards in this Set
- Front
- Back
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Economics growth |
Benefits - high employment and incomes - reduced poverty - economic development - better living standards - accelerator effect Drawbacks - high inflation - higher imports Risk of higher interest rates Neg externalities Increased inequality |
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Reducing cyclical and structural unemployment |
Benefits Increased EG Less poverty Increase in equality Increase in tax revenue Increase in productivity Drawbacks Increase in inflation Could increase interest rates Careless spending, less savings |
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Demand pull and cost push inflation |
Benefits A sign of economic growth Incentive for businesses Increased business revenue Increased wages and employment Drawbacks Increase in COP Increased inequality MPI increase Lower export revenue Falling value of money |
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Budget deficit |
Benefits Increase in GS so increase in EG depending on what it's spent on Drawbacks Loss of FDI Cost to future generations Lower value of money Possible increase in taxes as a result |
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Current account deficit |
Benefits Sign of strong economy. Drawbacks Low competitiveness of domestic goods Less I Unemployment Loss of business revenue |
