Lesson 1

Question 1

Real income

Answer 1

a person’s income adjusted for inflation

Question 2

Central bank

Answer 2

A government institution that regulates a country’s money supply, interest rates, and maintaining the stability of the financial system.

Question 3

Real value

Answer 3

Value of something adjusted for inflation

Question 4

LR effect

Answer 4

The Long Run Effect

Question 5

Nominal wage

Answer 5

Wages not adjusted for inflation

Question 6

Fiscal stability

Answer 6

an organisation’s ability to maintain a sustainable financial situation