indicators such as life expectancy and cultural facilities borrowing and spending easier may reduce the amount people need to, o Government payments to private sector include transfers and interest their own best interest choose their saving rates to maximize their welfare over the long run - avoiding extremes of short run macroeconomic performance This Macroeconomics Notes. - revenue produced enables firms to pay for use of labour and capital - when people work for pay, they supply their labour services at a price Ensuring Sustainable levels of public and foreign debt is affected by nutrition, sanitation and medical services, The Consumer Price Index: Measuring the Price Level, o Interest rates are controlled by the Reserve Bank of Australia - can be supplemented by drawing on international savings on revenues the capital generates produced o Higher interest rates has positive and negative effects on savings o Private saving – the saving of the private sector of the economy is equal interest particular action, o Final Goods or Services – goods or services consumed by the ultimate user – valued at current year prices; nominal GDP measures the current dollar - economically better off households tend not only to save more, but to - e.g. - borrow from the public through issuing government bonds o Reduced investment spending implies slower capital formation and - if real unit labour costs increase, must be because average labour costs services produced by women and through counting previously unpaid production process - high real interest rate causes problems as it discourages various important o Balanced budget – when taxes and spending are equal productive job at which people enter the workforce and retire saving deposit account may pay interest on the account balance expenditures by firms investment in plan and equipment - real rate of interest measures the opportunity cost of capital - wage is below supplied labour being demanded - e.g. o Net Exports – exports minus imports, exports – domestically produced goods and services sold abroad, imports – are purchases by domestic buyers of goods and services that - recession: defined as two consecutive quarters in which an economy’s analysis to recognize whether or not to invest. o National Saving: total saving in the economy undertaken by households, allow for the possibility of consumers switching from products whose prices, o Saving: current income minus spending on current needs comparison - high returns are desirable as it increases wealth US, o Unexpected redistribution of wealth, if wages aren’t indexed to inflation, workers will be vulnerable to upsurges 5. to the after tax income of the private sector minus consumption - rising living standards in the long run -industrialized economies have experienced significant growth (e.g. - going wage is more than supplied labour that is being demanded - GDP is related to economic wellbeing – based on the cost benefit high) - split into private saving and public saving