Boom, Bust and Recovery USA Flashcards
What is Inflation?
The increase in prices of goods and services.
It is normal for inflation to happen gradually every year
What is Trade?
The buying and selling of goods between different countries.
(Import and Export Trade)
What is a Tariff?
A tax placed on a product being imported into a country.
This makes it more expensive to sell.
`What does a Tariff encourage?
The buyers to purchase within its own country as there is no tariff.
This will benefit the country’s economy.
What are Interest rates?
The percentage added on to borrowed money.
What does the word ‘Boom’ describe?
When a country is making lots of financial profit through its industry and trade .
What does the word ‘Bust’ describe?
When a country’s production slows down and they lose money.
What does ‘Prosperity’ mean?
When the standard of living, in a country, is very good due to its growing economy.
