Unit 23 - The Business Cycle

Question 1

the difference between the amount of money a country receives from exports, foreign trade, etc. and the amount it spends on imports, etc. from other countries:

Answer 1

balance of payments

Question 2

a long period of expansion

Answer 2

boom

Question 3

the amount of extra money that a government needs because it has spent more money than it earned / the amount of extra money available to a government because it has spent less money than it earned

Answer 3

budget deficit / surplus

Question 4

the total amount that can be contained or produced, or (especially of a person or organization) the ability to do a particular thing

Answer 4

capacity

Question 5

a period in which there is very little business activity and not many jobs

Answer 5

depression / slump

Question 6

a decline in economic activity

Answer 6

downturn

Question 7

used in economics to describe something that is inside a particular system, rather than outside that system

Answer 7

endogenous

Question 8

a state of balance, for example when supply is the same as demand

Answer 8

equilibrium

Question 9

coming from or produced outside

Answer 9

exogenous

Question 10

the total amount of money that a government or person spends

Answer 10

expenditure

Question 11

a government’s plan for deciding how much money to borrow and to collect in taxes, and how best to spend it.

Answer 11

fiscal policy

Question 12

when everybody in a state has a job

Answer 12

full employment

Question 13

the total market value of all goods and services produced in a country during a given period

Answer 13

Gross Domestic Product (GDP)

Question 14

government or central bank actions concerning the rate of growth of the money in circulation

Answer 14

monetary policy

Question 15

the total amount of money available in an economy at a particular time

Answer 15

money supply

Question 16

an amount of something produced by a person, machine, factory, country, etc

Answer 16

output

Question 17

a downturn that lasts more than six months

Answer 17

recession

Question 18

money put aside to spend in the future

Answer 18

saving

Question 19

the money which is used for a particular purpose, especially by a government or organization

Answer 19

spending

Question 20

to make a legal agreement with someone to do work or to have work done for you

Answer 20

to contract

Question 21

to be greater than a number or amount, or to go past an allowed limit

Answer 21

to exceed

Question 22

to increase in size, number or importance, or to make something increase in this way

Answer 22

to expand

Question 23

an increase in economic activity

Answer 23

upturn