interest rate: the cost of borrowing or the reward for saving
investment:spending by firms on buildings,machinery and improving the skills of the labour force
long run aggregate supply:the economys productive capacity
monetary policy:controlling the macroeconomy via changes in monetary variables such as the money supply or interest rates
multiplier effect:where an increase or decrease in spending leads to a larger than proportinatechange in the national income
negative output gap:where the economy is producing less than its trend output
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