Unit 2 Key Terms

Across

• 1. Measures unemployment according to the number of people claiming unemployment-related benefits (such as Jobseeker's Allowance). (8, 5)
• 5. The interest rate set by the Bank of England, which affects all interest rates in the economy (also called the base rate). (4, 4)
• 6. Anything that is generally acceptable as a medium of exchange. (5)
• 7. A tax on spending, often defined as a tax on goods and services. (8, 3)
• 8. A sustained rise in the general price level over time. (9)
• 9. A good or service whose consumption is considered unhealthy or undesirable due to its bad effects on the consumers. It is over-consumed if left to market forces. Demerit goods have negative externalities and merit goods have positive externalities. (7, 4)