Unit 2 Keywords

Pregunta	Respuesta
Unemployment	Unused resources
Inflation	A sustained increase in the general level of prices
Monetary policy	Controls the amount and value of money in the economy
Supply-side policies	Measures intended to directly affect aggregate supply and the potential capacity output of the economy
GDP	Measure of economic activity in a period
Productivity	Measures output relative to input
RPI	Retail Price Index - Measures inflation
CPI	Consumer Price Index. Measures inflation
Demand-pull inflation	AD grows quicker than supply. Higher spending results in upward pressure in prices
Cost-push inflation	higher costs lead to expensive materials so prices have to be increased
Deflation	A sustained fall in the general price level
Current account	Difference between the value of X and M
Exchange Rate	Price of one currency in terms of another
Protectionism	Attempt to reduce imports by increasing price, reducing quantity or using regulation to deter foreign sellers.
Monetary policy transmission mechanism	how changes in base rate influence spending decisions and how they affect macroeconomic variables
capital spending	investment in infrastructure
current spending	funds day-to-day running of the public sector
NICE	Non Inflationary Constant Expansion

Resumen del Recurso

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