External Influenece On Business

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  • Created by: jeetenjsr
  • Created on: 07-11-16 07:32
Fiscal policy
the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.
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Tax
financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures.
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Subsidy
a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.
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tax holiday
a temporary reduction or elimination of a tax.
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excise
an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.
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Customs duty
A tax levied on imports (and, sometimes, on exports) by the customs authorities of a country to raise state revenue, and/or to protect domestic industries from more efficient or predatory competitors from abroad.
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business confidence
An economic indicator that measures the amount of optimism or pessimism that business managers feel about the prospects of their companies/ organisations. It also provides an overview of the state of the economy.
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Overheating
It occurs when its productive capacity is unable to keep pace with growing aggregate demand. It is generally characterised by an above-trend rate of economic growth, where growth is occurring at an unsustainable rate.
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Supply Side Policies
Government attempts to increase productivity and shift Aggregate Supply (AS) to the right.
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Demand side policies
It affect aggregate demand to affect output, employment and inflation.They can be classified into fiscal policy and monetary policy.
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Monetary policy
It is the process by which the designated authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
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Quantitative easing
A process in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
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Tight monetary policy
It is a course of action undertaken by the Federal Reserve to constrict spending in an economy that is seen to be growing too quickly or to curb inflation when it is rising too fast.
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Recession
a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
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Business Cycle
the fluctuation in economic activity that an economy experiences over a period of time.
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Demand - pull inflation
asserted to arise when aggregate demand in an economy outpaces aggregate supply.This is commonly described as "too much money chasing too few goods".
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Cost Push Inflation
caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.
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imported inflation
caused by foreign price increases or depreciation of a country's exchange rate.
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anti-inflationary
Any policy a central bank or other agency takes to reduce the inflation rate.
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structural unemployment
unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
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Cyclical unemployment
It results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction.
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Frictional unemployment
The unemployment which exists in any economy due to people being in the process of moving from one job to another.
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Supply Side Policies
Government attempts to increase productivity
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Indirect taxes
taxes on spending
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Other cards in this set

Card 2

Front

financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures.

Back

Tax

Card 3

Front

a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

Back

Preview of the back of card 3

Card 4

Front

a temporary reduction or elimination of a tax.

Back

Preview of the back of card 4

Card 5

Front

an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.

Back

Preview of the back of card 5
View more cards

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