Summary: Bus1002 Week 8

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Read the summary and the most important questions on BUS1002 Week 8

  • 1 Intro to Macroeconomics

    This is a preview. There are 2 more flashcards available for chapter 1
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  • What is a key action in macroeconomic policy intervention?

    Intervening when needed is crucial instead of just watching.
  • What are the major indicators of an economy's health?

    Economists consider five key factors: Standard of living, Inflation and Trade, Economic Growth, Productivity, and Unemployment.
  • What is the purpose of Monetary Policy?

    It aims to control the money supply and interest rates for economic stability.
  • What is fiscal policy?

    Fiscal policy involves government controlling and using money through spending and taxes.
  • How does a central bank respond when the economy is slow?

    The bank may lower rates to encourage borrowing and spending.
  • How does the government respond to a weak economy?

    The government can spend more or cut taxes to boost activity.
  • What action does a central bank take when inflation is high?

    It may raise interest rates to slow down spending.
  • What actions does the government take when inflation is high?

    To combat inflation, it can reduce spending or raise taxes.
  • What are the goals of Monetary Policy?

    To fight inflation, reduce employment, and support economic growth.
  • What is a budget deficit?

    A budget deficit occurs when the government spends more than it earns.

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