2.5.1 Economic influences KEYWORDS Flashcards
1
Q
inflation
A
increase in general price level
2
Q
consumer price index
A
CPI
method used to measure inflation
3
Q
exchange rate
A
price of 1 currency in terms of another
4
Q
appreciation
A
increase in exchange rate
5
Q
depreciation
A
decrease in exchange rate
6
Q
interest rates
A
cost of borrowing and reward for saving
7
Q
taxation
A
amount paid to government
8
Q
corporation tax
A
tax on business profits (20% in UK)
9
Q
business rates
A
tax on businesses properties
10
Q
VAT
A
tax on business sales revenue
11
Q
income tax
A
tax on consumer income
12
Q
government spending
A
money spent by government on schools, NHS, defenses etc
13
Q
budget deficit
A
government spend more than the receive in tax
14
Q
economic cycle
A
economy moves from boom to recession over time
15
Q
recession
A
2 consecutive quarters (6 months) of negative economic growth
