Effects of Business Cycles (Grade 10 NSC Matric Economics): Flashcards
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Practise the cards
10 cards from this deck
Aggregate demand
Aggregate demand
What consumers want to buy
Aggregate supply
Aggregate supply
What businesses are willing to produce
GDP
GDP
Gross Domestic Product - measure of economic output
Economic growth rate during expansion
Economic growth rate during expansion
Positive - economy produces more goods and services
Economic growth rate during contraction
Economic growth rate during contraction
Negative - economy produces less, GDP shrinks
Employment during expansion
Employment during expansion
Rises - businesses need more workers, unemployment falls
Employment during contraction
Employment during contraction
Falls - companies reduce workforce, unemployment rises
Inflation
Inflation
Price increase during expansion due to increased demand
Stagflation
Stagflation
Economic stagnation combined with high prices
Rand during expansion/boom phases
Rand during expansion/boom phases
Appreciates (becomes stronger)