Nature of the economy

4. setting the interest rate on overnight loans in the money market.
5. money used to purchase equipment or premises for the establishment of a new business or the expansion of an existing business.
7. a relatively mild contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth.
9. a rise in prices across all sectors of the economy.
12. the production and consumption of goods and services, supply of money.
13. economic fluctuations between periods of expansion and contraction.
14. states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied.
15. a joint dependence between participants in an economy; that is, the reliance of consumers, workers, businesses and governments on each other.
16. the buying and selling of labour.
19. the market supply and demand balance each other, result prices become stable.

1. a place where buyers and sellers can meet to facilitate the exchange/transaction of goods and services.
2. the interaction of the forces of demand and supply that determines the price of a good or service.
3. develop international influence or begin operating on an international scale.
6. a theory that prices are settled by the relationship between supply and demand.
8. the use of the federal government’s budget to achieve economic objectives.
9. the price that must be paid in order to use someone else’s money.
10. a large business that has branches in more than one country.
11. regularly putting aside some money for future use.
17. goods and services sold by local businesses to overseas consumers.
18. the creation of goods and services.