Economic terms for The Economic policy

Question 1

Economy

Answer 1

The system of trade and industry by which the wealth of a country is made includes production and consumption

Question 2

Economic growth

Answer 2

Increase in the production of goods and services

Question 3

GDP

Answer 3

Gross domestic product - value of all goods and services within a countries border

Question 4

GNP

Answer 4

Gross National Product - value of all goods and services produced by a country domestically or abroad

Question 5

Inflation

Answer 5

when prices of goods and services increase faster than wages

Question 6

Deflation

Answer 6

When prices of goods and services decrease while wages increase

Question 7

Interest rates

Answer 7

Applied to savings and credit

Question 8

Import controls

Answer 8

Controlling what comes into the country using border control and tax and tariffs on goods entering the country

Question 9

Import

Answer 9

Things entering the country

Question 10

Export

Answer 10

Thing leaving the country

Question 11

Stagflation

Answer 11

-Economic growth decreases while inflation and unemployment increases
-Economy not growing while prices of goods and services increase

Question 12

Balance of payments

Answer 12

Difference between amount of money leaving a country and the amount of money entering a country

Question 13

Butskellism

Answer 13

describes the economic approaches of labour chancellor Gaitskell and conservative chancellor Butler

Question 14

Stop and Go Economics

Answer 14

-the use of interest rates, taxes and import control to manage spending and inflation
-REACTIVE not STRATEGIC

Question 15

Deficit

Answer 15

-Debt
-More money leaving than you have coming in

Question 16

Consumer

Answer 16

Someone who buys goods or services