Flashcards
Unit 2 Keywords
Cards in this deck (18)
- 1UnemploymentUnused resources
- 2InflationA sustained increase in the general level of prices
- 3Monetary policyControls the amount and value of money in the economy
- 4Supply-side policiesMeasures intended to directly affect aggregate supply and the potential capacity output of the economy
- 5GDPMeasure of economic activity in a period
- 6ProductivityMeasures output relative to input
- 7RPIRetail Price Index - Measures inflation
- 8CPIConsumer Price Index. Measures inflation
- 9Demand-pull inflationAD grows quicker than supply. Higher spending results in upward pressure in prices
- 10Cost-push inflationhigher costs lead to expensive materials so prices have to be increased
- 11DeflationA sustained fall in the general price level
- 12Current accountDifference between the value of X and M
- 13Exchange RatePrice of one currency in terms of another
- 14ProtectionismAttempt to reduce imports by increasing price, reducing quantity or using regulation to deter foreign sellers.
- 15Monetary policy transmission mechanismhow changes in base rate influence spending decisions and how they affect macroeconomic variables
- 16capital spendinginvestment in infrastructure
- 17current spendingfunds day-to-day running of the public sector
- 18NICENon Inflationary Constant Expansion
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- Flashcards on Unit 2 Keywords, created by sarahsing on 26/04/2014.
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- sarahsing
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