Supply side policies flashcards

Supply side policy

A policy that aims to increase the total amount of supply in the economy through government spending.

Economic growth

The increase in the real value of goods and services produced as measured by the annual percentage change in real GDP

Opportunity cost

The next best alternative given up when making a choice

Rate of unemployment

The amount of people who are able and willing to work, but cannot currently find an employer.

Inflation

Inflation is a sustained increase in the cost of living or the general price level leading to a fall in the purchasing power of money