Econmic Defintions
Economic definitions
Economy - the state of a country or region in terms of the production and consumption of goods and services and the supply of money.
Economic growth - steady growth in the productive capacity of the economy (and so a growth of national income)
Recession - a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
The Ripple Effect - Indirect effect that spreads out from the direct or main effect to reach areas or population far removed from its intended or original purpose or target.
Inflation – A general increase in prices and fall in the purchasing value of money.
"Policies aimed at controlling inflation"
What causes inflation? - This does not happen by magic. It takes someone, somewhere making a conscious choice to charge more for the good or service they sell. The initial increase does not have to be in something that is being directly measured by the consumer price index. No household in my neighborhood, for example, buys barrels of oil; and yet when they become more expensive that sends a ripple throughout all related products. In the end, consumer prices jump as well.
What has the cost of credit to do with business? - The first thing to analyse is the fact that the labour force is people who are able to work whether they are employed or not. Basically we are talking about people between 16 and 65 years old (the last one is in many countries the retirement age). Depending on the economy, country and type of business, the labour force will impact overall the way a business performs its activity and may serve as an indicator of the economy status in a certain area.
Fiscal policy - A government policy for dealing with the budget (especially with taxation and borrowing)
Monetary policy - Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest
Economy - the state of a country or region in terms of the production and consumption of goods and services and the supply of money.
Economic growth - steady growth in the productive capacity of the economy (and so a growth of national income)
Recession - a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
The Ripple Effect - Indirect effect that spreads out from the direct or main effect to reach areas or population far removed from its intended or original purpose or target.
Inflation – A general increase in prices and fall in the purchasing value of money.
"Policies aimed at controlling inflation"
What causes inflation? - This does not happen by magic. It takes someone, somewhere making a conscious choice to charge more for the good or service they sell. The initial increase does not have to be in something that is being directly measured by the consumer price index. No household in my neighborhood, for example, buys barrels of oil; and yet when they become more expensive that sends a ripple throughout all related products. In the end, consumer prices jump as well.
What has the cost of credit to do with business? - The first thing to analyse is the fact that the labour force is people who are able to work whether they are employed or not. Basically we are talking about people between 16 and 65 years old (the last one is in many countries the retirement age). Depending on the economy, country and type of business, the labour force will impact overall the way a business performs its activity and may serve as an indicator of the economy status in a certain area.
Fiscal policy - A government policy for dealing with the budget (especially with taxation and borrowing)
Monetary policy - Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest