Econmics

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Overseas sector

other contries which buy NZ exports and supply NZ imports
Exchange rate

NZ $ in terms of other contries
inflationary expetations

expecting a rise in the genral price level
business confidence

measures of how willing a business are to invest + there views on future sales + profits
Economic growth

a long term expansion of a countrys prouduction potential
How is eco growth measured
- GDP
- Production capctiy
- Net soacil welfare
What is GDP

the real value of all finished G+s in one year
what doesn't GDP show
- what is acutally being proudced
- how equally the income is distruited
- the impact on the enviorment
- what is underclarged or illegal
what dosent Productive Capacity show
- what is actually being produced
- standard of living
what does net socail welfare look at
Real flows

flows of g+s . you can see and touch them
money flows
- only involves money
- e.g incomes, saving
injection

money going into the circular flow of income govt spending exports
invesments

increase in the econmic activity from the fincal sector into circular flow
transferes

they come from Govt to help stimulate eco growth
what decrease eco growth
- savings
- taxation
- imports
what increase eco growth
- investment
- govt spending
- exports
AS will increase when there is
- decrease in raw materials
- rise in prouduvity
- decrase in nominal wages
- decrase in price of oil
- rise in exchange rate
AD will increase when
- increase in investments
- increase in consumption
- increase in Govt. spending
- decrease in exchange rate
- decrease in NZ$
what are the benefits of eco growth
- increase production
- increased investment
- higher incomes
- increased savings
- higher tax revenue for govt
negitive effects of eco growth
- rersouse depletion
- increase polutiion
- higher cost of compliance
- higher stress level
- traffic congetstion
- over crowed in tourist areas
- uneven impact
- inflation
postive impact on eco growth on households
- more jobs
- higher incomes
- better range of g+s
- new technolgy
negtive impact on eco growth on householdes
- increased pollution
- traffic congestion
- higher stress
- income inequality
eco growth negitvly on bussiness
- higher cost of implying with regulations
- higher cost of resources
- shortage of resourse
eco growth postive business
- increased demand for g+s
- increase sales + profits
- more invesment
- more spending on R&D
eco growth on goverment postive
- higher tax revenue
- more spending on public goods
- lower public debt
eco growth on government negitive

increased spending on regulations and monitoring resource use
eco growth on enviroment postive
- greater awerness of envromental issues
- substainable resourse use
- greater reycling
eco growth on environment negitve
- resouse depletion
- destruction of natural habits
- increased pollution
- more exploration for re souses

Author

jessical

243720

Card Set

Econmics

Description

revison for test

Updated

2013-10-29T21:15:51Z

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