theme 2 AO1 Flashcards
What is Monetary policy?
Monetary policy is where a country’s central bank will change the interest rates, supply of money or exchange rates to influence an economy
what is GDP
The total value of all goods and services produced within an economy in a given period of time
What is GDP per capita
the average GDP of each person in a country
What are supply-side policies?
Policies that aim to increase the supply of goods in an economy
What is the government budget
The statement of what the government plans to do in regards to taxation and spending.
What is balance of trade?
The difference between the value of a countries total exports and total imports over a given period of time
What is the CPI?
It is a way of measuring inflation by using the prices of a basket of popular goods and services over a particular period of time
What is demand-pull inflation?
Higher demand > increased prices
What is cost-push inflation?
Higher costs for businesses > higher prices being charge to account for higher costs.
