Chapter 2

3. contraction, slowing of the business cycle
5. The Reserve Bank's policy to influence money supply and interest rates
8. measurement of inflation, price changes over time
10. The government pays money to industries for the public and economic good
13. Price paid to use capital, % of a loan
15. Measurement of efficiency
18. Value of a country's currency against another
20. value of goods and services available at a time

1. low economic activity, high unemployment and low confidence
2. Optimism of businesses in the economy
4. Recovery, increased economic activity
6. Optimism of consumers in the economy
7. goods and services M
9. government action to influence the economy through taxes and government spending
11. increase in economic capacity over time
12. organizational structures and facilities (roads, powerlines, etc.)
14. money set aside for the future, S
16. Australia's central bank
17. money leaving the circular flow
19. measurement of a country's goods and services in a year