Macroeconomic Aims
Sign of economic growth
Rising GDP
How governments collect money
Taxation
Central bank’s main economic tool
Interest rates
General rise in prices
Inflation
Money used to start a business
Capital
Goal of reducing joblessness
Full employment
Expansionary fiscal policy does this
Increase spending
QE increases this
Money supply
Country with hyperinflation
Venezuela
When demand exceeds supply
Shortage
Opposite of price stability
Inflation
Cause of a budget deficit
Spending > Revenue
High rates reduce this
Consumer loans
Central bank action during deflation
Cut rates
Tax on imported goods
Tariff
Trade balance means imports & exports...
Equal value
Example of an automatic stabilizer
Unemployment benefits
Central bank’s key rate
Benchmark rate
CPI measures this
Price index
Person who starts a business
Entrepreneur
Sustainable growth considers...
Environment
Goal of contractionary fiscal policy
Reduce inflation
Tight monetary policy aims to...
Lower inflation
Stagflation includes high...
Unemployment
System where people trade freely
Free market