2.5 - External Influences Flashcards
(16 cards)
Appreciation
The rise in the price of one currency against another
Boom/peak
The high point in the b cycle where GDP is growing quickly
Business cycle
Measures eco activity over time and shows stages of boom, downturn (rising unemployment), recession and recovery
Consumer prices index
A measure which shows changes in avg prices over time
Deflation
A fall in the general price level
Depreciation
A fall in the value of a currency
Downturn
A period in the economic cycle where GDP grows but slowly
Economic influences
Economic variables such as economic growth, inflation, interest rates and unemployment
Exchange rate
The price of one currency in terms of another
Government expenditure
The amount spent by the gov in its provision of public service and welfare benefits
Inflation
The general increase in the level of prices in an economy in a year
Interest rate
The price of borrowing money/the return on saving money
Recession
Where GDP falls for 2 or more quarters
Recovery
A period where economic growth begins to increase again after a recession
Legislation
A collective name for laws and regs used by gov to restrict certain activities
Market structure
Characteristics of a market, such as size of barriers to entry to market, no of b, determines behaviour of businesses w/in market
