theme 2 economics

Question 1

Gross Domestic Product (GDP)

Answer 1

The total value of all goods and services produced in a country over a specific time period

Question 2

Inflation

Answer 2

The rate at which the general level of prices for goods and services is rising.

Question 3

Unemployment

Answer 3

The number of people who are actively seeking work but are unable to find employment

Question 4

Aggregate Demand (AD)

Answer 4

The total demand for goods and services within a particular market.

Question 5

Aggregate Supply (AS)

Answer 5

the total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Question 6

Fiscal Policy

Answer 6

Government policy regarding taxation and spending to influence the economy.

Question 7

Monetary Policy

Answer 7

The process by which the central bank controls the money supply, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.