Summary
Summary AS Notes Economics Unit 2 Policy Conflicts
- Course
- Institution
- Book
AS Notes Economics Unit 2 Policy Conflicts Revision Notes
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
A Level Revision Notes Economics Unit 3 Price Discrimination
-
A Level Revision Notes Economics Unit 3 Monopoly
-
A Level Revision Notes Economics Unit 3 Competition
Seller
Follow
mmammadov050
Content preview
Economic Schockunexpectable event that affects the economy ex coronavirus
ex rise in oil prices increase costs of firms
contain two type of shocks
Demand side shocks supply side shocks
affect components affect short run aggregate
of aggregate demand supply and countries long
ex financial crisis term productive potential
ex disaster
Policy Mix
combination of a country's monetary policy and fiscal policy
to influence growth and employment
Hysterises
when the economy experiences a recessionIdepression lowering the
long term trend rate of growth Lowers economic growth and doesn't bouncebo
recovery
Real
GDP
n Boom
j oldlongtermtrend ofgrowth
rt
slowdown
Slump
1 Newlongtermtrendof growth
I
Time
conflict between policies
one policy
may achieve one objective but could have undesirable
effects on another policy
ex environmental taxes used to reduce pollution
may lead to inflation
ex 9 spending on education will
TAD inthe short run TAS in the long run
due to improved dueto increase in
qualityof education labour productivity
9in prices tin prices
ex Inverse relationship between inflation and unemployment
, Phillip's curve
inflation
High inflation Low unemployment
Low inflation High unemployment
µqyµmen
ex Economic growth can lead to greater inequality
high increases in pay of people in top paying jobs
Increase in wealth as property prices rise
Greater pay increase in high income workers than
in low income earners
Sustainable Economic Growth
rate of growth which can be maintained without creating other
significant economic problems especially for future generation
ex preventing depletion of resources
ex preventing pollution
sustained growth involves increase in output LRAS will shift to the right
Priffevel n IRAS 52
LRA
P
l l
l l AD2
I Adn
t y
Ye Th Real
GDP
Note Workers in Gig Economy
Deliveroo are not employees
but are agents
Don't relieve sick pay maternal
paternal leave
Get payed for the amount
of deliveries made don't
get paid when doingnothing
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mmammadov050. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now