Ch.5 Definitions Revision

Definitions 1

100

a list of income and likely expenditures

budget

200

the branch of economics that emphasises the central role played by the level of expenditure or aggregate demand

macroeconomics

300

the removal of unnecessary direct government controls, restrictions and supervision in various areas of the economy

deregulation

400

the sum or total value of all spending or demand on final (finished) goods and services produced by a nation and measured over a period of time.

aggregate demand

500

a macroeconomic or aggregate demand management strategy involving the government’s estimates of the expected value of its receipts and the expected value of its outlays

budgetary policy

Definitions 2

100

to purchase goods and services for direct use or ownership

consume

200

a measurement of the increase in a country’s gross domestic product (GDP)

economic growth

300

the use of the federal government’s budget to achieve economic objectives

fiscal policy

400

 a cash payment by the government designed to help producers compete by enabling them to sell their product at a lower price than would otherwise occur

subsidies

500

a government levy or revenue measure that can be used as part of the budget to affect the level of prices, the growth rate and the distribution of income

taxation

Definitions 3

100

money received on a regular basis from work, property, business, investment or welfare

income

200

all activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country

economy

300

the human skills and effort required to produce goods and services

labour

400

the branch of economics that studies the smaller fragments or units making up the whole economy

microeconomics

500

the Reserve Bank using interest rates to achieve economic objectives

monetary policy

Definitions 4

100

the total value of all goods and services produced in a country in a given period of time (usually a year)

gross domestic product (GDP)

200

a tax on imports

tariffs

300

a general rise in prices across all sectors of the economy

inflation

400

a payment to a local producer

subsidy

500

quantity limits or targets for production or imports

quotas