Supply side policies flashcards

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Supply side policy

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5 Terms

1

Supply side policy

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

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2

Economic growth

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

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3

Opportunity cost

The next best alternative given up when making a choice

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4

Rate of unemployment

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

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5

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

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