Economic Indicator

1. Inflation creates uncertainty for _______ , forcing them to change prices frequently and delaying investment decisions.
5. ______________ fiscal policy and expansionary monetary policy aim to increase total (aggregate) demand in an economy.
7. The _____________ consists of all people who are actively working plus those unemployed but seeking work.
9. Cost-push inflation is caused by ___________ in the costs of production like labour, raw materials or falling productivity.
15. ______________ is when someone is not working but actively seeking work.
17. __________ unemployment is caused by a fall of total (aggregate) demand in an economy.
19. The quality of labour can be improved through ___________ and education.
20. ____________ is the total spending on capital goods by firms.

2. A ___________ is a period of at least six months (two quarters) of economic decline, causing a decrease in real gross domestic product (GDP).
3. ___________ occurs when there is a fall in the general price level of goods and services in an economy.
4. During a recession, national output (real GDP) _______.
5. ____________ is the economic use of labour as a factor of production.
6. ______________ refers to a reduction in the inflation rate from a higher level to a lower level, but prices are still rising e.g the rate of inflation falls from 5% to 3%.
8. _____ is the total value of all goods and services produced in an economy in a year.
10. _____________ unemployment occurs when there is a mismatch between jobs and skills in the economy.
11. ____________ policies aim to improve the quantity/quality of the factors of production thereby raising potential output.
12. _____ exports is the difference between the revenue gained from selling goods and services abroad and the expenditure on goods and services from abroad.
13. _____________ is the total spending on goods and services by consumers (households) in an economy.
14. ___________ is the sustained increase in the general price level of goods/services in an economy.
16. Inflation decreases consumers' ____________ power and reduces the real value of savings.
18. Aggregate demand is the sum of _____________, investment, government spending and net exports.