Random econs

Government budget

a forecast of government spending and revenue for the following financial year

increasing interest rate

= increasing cost of borrowing = make things more exp

so it discourages investment by entrepreneurs

a policy that can achieve economic growth and price stability at the same time

supply - side policy

cyclical unemployment in a recession is caused by

a temporary decrease in demand for labour

calculating unemployment with labour force survey

• immediately available for work

• actively seeking work

Supply-side policy

long term measure to increase productive capacity of economy by improving quality and quantity of factors of production

Fiscal Policy

• taxation

• gov expenditure

Monetary policy

• exchange rate

• interest rate

• money supply