Drawing and Interpreting Economics Diagrams (HSC SSCE Economics): Flashcards
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Two main purposes of economic diagrams
Two main purposes of economic diagrams
Macroeconomic phenomena & microeconomic analysis
Price change when tariffs removed
Price change when tariffs removed
Falls from (protected) to (world price)
What initiates the debt-trap cycle
What initiates the debt-trap cycle
Foreign borrowing/investment increases foreign liabilities
How floating exchange rates are determined
How floating exchange rates are determined
By market forces of supply and demand
What the Lorenz curve visualises
What the Lorenz curve visualises
Income inequality within an economy
Gini coefficient range
Gini coefficient range
0 (perfect equality) to 1 (complete inequality)
Phillips curve shows trade-off between
Phillips curve shows trade-off between
Inflation and unemployment (inverse relationship)
Effect of minimum wage above equilibrium
Effect of minimum wage above equilibrium
Creates unemployment (labour supply exceeds demand)
Expansionary policy effect on AD curve
Expansionary policy effect on AD curve
Shifts AD right, raising output and price level
Cause of stagflation in AS-AD model
Cause of stagflation in AS-AD model
Leftward AS shift (negative supply shock)