Economic Cycles Topic 9

Economic Cycles A change in the make up of society (age, race, income) is known as? Demographics, populations, emigration The economic cycle is? Expansion>peak>slowdown>trough Expansion>slowdown>peak>trough The total value of the goods and services produced in the economy is known as? Gross Domestic Product (GDP), Budget To grow the economy (increase GDP) which of these are desirable? Low inflation & low tax or high inflation & high tax During a peak which is true? Spending high & unemployment low, spending low & unemployment low, both high A peak will result in? More loans taken out, more demand and prices rising or Less loans, less demand and prices falling During a peak when there is too much demand inflation will rise; the Bank of England will? Increase or decrease interest rates Another word for a slowdown is a? deflation, deficit, recession When people are pessimistic about the economic cycle they will? Cut back or increase investment and spending Does the economic cycle make long or short term planning particularly difficult? Long or short How long is the typical mortgage? 5, 15 or 25 years Which two would cause a real problem for a person with a 25 year mortgage? Unemployment, increase in interest rates, inflation, fall in the pound, Which 3 of these would be sensible for a person to do during the peak of the cycle? Save money for a rainy day, live within their means, use their credit cars to the maximum, understand economic figures, spend all income People coming to the UK is known as? Urbanisation, immigration, emigration, internal migration People moving to cities is known as? Urbanisation, immigration, emigration, internal migration People moving within the UK is known as? Urbanisation, immigration, emigration, internal migration When people live just outside the city and work in the city, they are said to live in the? Commuter belt, Commuter band Are costsof living generally higher in the countryside or the city? More immigration to the UK will result in? Higher or lower tax revenue & government spneding on services & benefits Which is the biggest group in the UK by age demographic? Children, teens, 20s, 30s, 40s, 50s, 60s, 70s, 80+

The Ageing Population What are the two main reasons the population are ageing? improved life expectancy (ie better healthcare means that people are living longer) a falling birth rate (ie people are having fewer children) b) What are the main 3 problems with an ageing population for our society? an increased pensions bill an increased need for particular services, such as healthcare cuts in tax revenue because fewer people are of working age c) What are the 4 possible solutions the government has put forward to pay for the ageing population? increasing the retirement age compulsory savings higher taxes greater levels of immigration d) By 2044 what will be the age of retirement in the UK? 68 e) What is the name given to the new pension that everyone who has not got a private pension has to take out? Workplace pension

Economic Cycles A change in the make up of society (age, race, income) is known as? Demographics, populations, emigration The economic cycle is? Expansion>peak>slowdown>trough Expansion>slowdown>peak>trough The total value of the goods and services produced in the economy is known as? Gross Domestic Product (GDP), Budget To grow the economy (increase GDP) which of these are desirable? Low inflation & low tax or high inflation & high tax During a peak which is true? Spending high & unemployment low, spending low & unemployment low, both high A peak will result in? More loans taken out, more demand and prices rising or Less loans, less demand and prices falling During a peak when there is too much demand inflation will rise; the Bank of England will? Increase or decrease interest rates Another word for a slowdown is a? deflation, deficit, recession When people are pessimistic about the economic cycle they will? Cut back or increase investment and spending Does the economic cycle make long or short term planning particularly difficult? How long is the typical mortgage? 5, 15 or 25 years Which two would cause a real problem for a person with a 25 year mortgage? Unemployment, increase in interest rates, inflation, fall in the pound, Which 3 of these would be sensible for a person to do during the peak of the cycle? Save money for a rainy day, live within their means, use their credit cars to the maximum, understand economic figures, spend all income People coming to the UK is known as? Urbanisation, immigration, emigration, internal migration People moving to cities is known as? Urbanisation, immigration, emigration, internal migration People moving within the UK is known as? Urbanisation, immigration, emigration, internal migration When people live just outside the city and work in the city, they are said to live in the? Commuter belt, Commuter band Are costsof living generally higher in the countryside or the city? More immigration to the UK will result in? Higher or lower tax revenue & government spneding on services & benefits Which is the biggest group in the UK by age demographic? Children, teens, 20s, 30s, 40s, 50s, 60s, 70s, 80+