Edexcel Economics 5. The UK Economy - Income, Growth, Policy

Description

Term

A stock of all the assets people/firms/governments, &c own whether physical like houses or financial like shares

That an increase in which would cause economic growth by incentivising firms to invest which would have a further multiplier effect, creating more growth

Where money flows into the circular flow in the form of investment (I), government spending (G), and exports (X)

That, the belief in which, makes demand-side policies politically controversial due to their interventionist nature

That type of policy, the primary concern of which is in regards to the government budget deficit or surplus and the taxation and spending that created it

The British government's inflation target - responsibility of the Bank of England - measured in terms of the consumer price index

That which will increase when total injections exceed total withdrawals in the circular flow

That body, influence in the form of voting power at which is much affected by a country's economic growth

That which might sometimes be a good thing as it allows firms to expand quickly due to the available pool of labour, and imposes discipline on the labour market due to the ability to replace individuals units of labour

That which the Bank of England believes to be the long-run sustainable unemployment rate

Description

Term

That which often arises between and within macroeconomic objectives and macroeconomic policies, thereby requiring trade-offs

That which affects the structure of an economy by increasing the share of the economy devoted to services, due to an increase in productivity, and people working fewer hours thereby increasing their spending on services

The salient factor affecting economic growth

A prolonged slump where real gross domestic product falls by more than 10% from the peak of the trade cycle to the trough

The period in which economic growth is above the trend rate, with there being higher inflation and lower unemployment

The four stages of the trade cycle beginning with the highest point

One of the three pairs between withdrawal and injection, relating to consumers and firms

Where money flows out of the circular flow in the form of saving (S), taxation (T), and imports (M)

That which would be reduced by a rise in interest rates as spending (investment and consumption) decreases while saving increases

That, which would cause economic growth by increasing productivity and efficiency, thereby freeing up resources to produce additional goods and services