Pages in this set

Page 1

Preview of page 1
Unit 2: Managing the Economy-Definitions


Inflation: - Inflation is a rise in the general price level in the economy. It is measured by the
Consumer Price Index. It's a measure of an increase in the cost of living.
Demand-pull Inflation: - This is where demand in an economy increases but…

Page 2

Preview of page 2
Export led growth: -This is where the main cause of an increase in aggregate demand is by
an increase in exports.
Wealth effects: - Wealth effects occur when asset prices rise and create a feeling of being
richer. This leads to an increase in consumption.
Fiscal Policy: - Fiscal policy…

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »