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Revision Notes for Chapter 10
1. Economic growth an increase in income, output and expenditure over a
period of time
2. Fiscal policy managing the economy by making changes to taxation
3. Inflation a rise in the general price level
4. Interest the price in borrowed money
5. Monetary policy managing the economy by making changes to interest
rates and the money supply
6. Monopoly where one large business dominates the whole market
7. Unemployment where people are out of work and cannot find a job
How does the government influence business activities?
Employee protection at work
Economic and regional policy
Economic growth cycle:
Boom: This is the peak of the cycle. Incomes will be rising, demand will be
rising, unemployment falls as jobs were created, wages will be rising as well.
However, prices may be rising as well.
Recession: This is at the bottom of the cycle. National income falls,
unemployment will rise as jobs were lost, demand starts to fall, business
bankruptcies will rise, and prices fall.