Definitions Flashcards
(7 cards)
Economic Development definition
The process of improving people’s wellbeing and quality of life, involving improvement in standards of living, reduction in poverty, improved health and education along with increased freedom and choice
Economic growth definition
Economic growth is an increase in real GDP in an economy in a year
Monetary policy definition
Changes to interest rates, the money supply, and the exchange rate by the central bank in order to influence AD
Inflation definition
A sustained increase in the general price level from one year to the next
Fiscal policy definition
Changes to government spending and taxation in order to influence AD
Supply side policies Definition is
Policies designed to increase the productive capacity of the economy, shifting LRAS to the right
Globalisation definition
The increasing inter connectedness and interdependence of national economies, driven by the free flow of goods, services, capital and information across international borders
