Year 10 Half Yearlys Flashcards
What is gdp
It is short for gross domestic product and it represents the total dollar value of all goods and services provided over a specific time period
What is circular flow of income
The circular flow of income is a model that depicts how model flows through the economy. Money flows to the workers in the form of wages and money flows back to the firms in exchange for products. Supply creates demand
What is the business cycle
It is a cycle or series of cycles of economic recovery’s or recessions. The Highest point of the cycle is the peak. When it lowers it is a recession. The lowest point is the trough. When it goes up it is called a recovery.
What is unemployment
Unemployment occurs when a person is actively searching for employment is unable to work. Unemployment is often used as a measure of the health of the economy.
What is inflation
Inflation is the increase in the general level of prices for goods and services in a country. As inflation rises, every dollar you own buys less of a good and service. When prices rise and when the value of money falls you have inflation.
What are interest rates.
It is the amount charged by a lender to a borrower for the use of assets. The assets borrowed could include cash, consumer goods and large assists such as a house.
What is consumer spending
Consumer spending is an exchange of money for goods and services. If consumers spend too much of their income future economic growth could be compromised because of insufficient savings and investments.
What is business investment
This is the act of committing money or capital to a business, with the expectation of obtaining an additional income or profit.
What were the four factors of production
Land labour capital enterprise
