Economics Glossary

4. equilibrium the point at which the demand and supply curves intersect
5. the use of the federal government's budget to achieve economic objectives
6. the price that must be paid in order to use someone else's money
7. states that the quantity of a good or service demanded varies inversely to price
8. regularly putting aside some money for future use
9. cycle the cyclical fluctuations in the general level of economic activity
11. states that the quantity of a good or service supplied varies directly with the price
12. a severe contraction in the level of economic activity resulting in many business failures, high and sustained levels of unemployment and sometimes falling prices

1. where the exchange of goods, services or resources between buyers and sellers occurs
2. all activities undertaken for the purpose of distribution and consumption of goods and services in a region or country
3. the process that sees people, goods, money and ideas moving around the world faster and more cheaply than before
4. The Reserve Bank using interest rates to achieve economic objectives
9. the swapping or exchanging of one good for another
10. the creation of goods and services