macro defantions

Question 1

current account on the balance of payments

Answer 1

all exports and imports are recorded

Question 2

monetary policy

Answer 2

using interest rates and money supply to control inflation and economic growth.

Question 3

relative poverty

Answer 3

When someone has less income than others, they cannot afford a normal standard of living.

Question 4

income inequality

Answer 4

unequal distribution of income throught an economy

Question 5

imports

Answer 5

buying good or services from another country

Question 6

exports

Answer 6

sale of goods or services to another country

Question 7

globalisation

Answer 7

Growing interconnection of the world’s economies

Question 8

current account surplus

Answer 8

When the value of exports exceeds the value of imports

Question 9

privatisation

Answer 9

selling a compony controlled by the goverment to a private investors

Question 10

deregulation

Answer 10

the removal of goverment rules

Question 11

pollution permits

Answer 11

a licence that allows a firm to release a certain amount of pollution.

Question 12

recovery

Answer 12

a phase in the economic cycle where gdp starts to rise

Question 13

fiscal surplus

Answer 13

goveremnt revanue is greater than goverment expenditure

Question 14

absolute poverty

Answer 14

when someone cannot afford basic needs

Question 15

fisical policy

Answer 15

using government spending and taxation to influence the economy