Question | Answer |
In general terms, what does the business cycle show | the changing nature and pace of the level of economic activity
|
How many phases are in the business cycle | four
| Describe two economic conditions that would be present in a contactionary phase of the business cycle | economic activity is slowing; rising unemployment; low inflation; falling interest rates
| What is a 'peak' in the business cycle | the highest point; boom in the level of economic activity
| What would the RBA do to interest rates as the economy moves through an expansionary phase of the business cycle | increasing interest rates
| A trough in the business cycle could be characterised by a | recession or depression
| Technically a recession occurs when | there are two consecutive quarters of negative economic growth
| What is the governments aim in terms of economic growth | sustainable economic growth
| Why is economic growth desirable | it increases living standards
| What is another work for living standards | wellbeing;welfare
| Explain what is meant if material living standard are rising | individuals are able to access more goods and services
| Provide 4 examples of aspects that would influence non-material living standards | quality of the environment; crime rates; amount of leisure time; education levels; health
| What is a common measure of economic growth | real GDP per capita
| What does per capita mean | per person
| How often is GDP measured by the ABS | every quarter (3 months) |