Economics Flashcards
business cycle
the cyclical fluctuation in the general level of economic activity
appreciation
an upward movement of the Australian dollar (or any other currency against another currency
balance of trade
the difference between the value of a nation’s imports and the value of its exports
comparison rate
loan interest rates calculated after adding fees and charges to the lender’s advertised rate
Consumer Price Index (CPI)
Australia’s main measure of inflation
Depreciation
a downward movement of the Australian dollar (or any currency) against another currency
foreign debt
the amount of money a country has borrowed from overseas sources
foreign exchange (forex or fx) market
the market that determines the price of one currency relative to another
foreign exchange rate
the ratio of one currency to another
inflation
general rise in prices causing money to lose it’s value
interest rate
the annual cost of borrowing credit or the annual return on invested savings; the price of money
macroeconomics
the study of the economy as a whole
mixed economy
an economic system in which individuals and business make their own decisions but with a degree of government involvement
recession
a relatively mild contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth
standard of living
the quality of life measured by the quantity of life measured by the quantity of goods and services available for consumption
