Inflation caused by an increase in the prices of inputs like labour, raw materials, etc. The increased price of the factors of production leads to a decreased supply of these goods
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Card 17
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Policies that slow down economic activity by increasing leakages and reducing injections into the circular flow of money
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Card 18
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Unemployment that is caused by a downturn in the economic cycle. Spending is falling so output falls and fewer employees are needed
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Card 19
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Inflation caused by excess aggregate demand. Quantity demanded exceeds total output
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Card 20
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A fall in the exchange rate that makes imports dearer and exports cheaper
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Card 21
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Occur when further increases in size begin to increase average costs and inefficiencies develop
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Card 22
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The amount of income a person can actually spend on goods and services. It measures consumers' spending power after tax
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Card 23
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The stage of the economic cycle when the boom slows and the rate of growth of GDP decreases
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Card 24
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The fluctuations in the levels and rates of growth of GDP over a period of time. It is sometimes referred to as the trade of business cycle
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Card 25
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A reduction in average costs brought about by an increase in the size of the business
