Policy Objectives (Edexcel A-Level Economics A): Flashcards
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Number of key macroeconomic policy objectives
Number of key macroeconomic policy objectives
Seven
Economic growth definition
Economic growth definition
Increase in productive capacity of the economy
Full employment occurs when
Full employment occurs when
Economy operates on production possibility frontier
Cost-push inflation source
Cost-push inflation source
Supply side - increase in costs faced by firms
Demand-pull inflation source
Demand-pull inflation source
Demand side - increase in aggregate demand
Menu costs of inflation
Menu costs of inflation
Costs of firms frequently amending price lists
Shoe-leather costs
Shoe-leather costs
Costs of frequent bank trips to avoid holding money
UK CPI inflation target (since 2004)
UK CPI inflation target (since 2004)
2%
PSNCR meaning
PSNCR meaning
Public sector net cash requirement
Horizontal equity
Horizontal equity
Identical circumstances = identical income