| A | B |
|---|
| equilibrium | market with no tendency to change |
| exchange rate | price of a foreign currency in terms of another currency |
| investment | business spending on capital goods |
| fiscal policy | changing G and T to affect AD |
| free market | economy in which markets determine prices and output |
| frictional unemployment | people temporarily between jobs |
| globalization | process of increasing world-wide connectedness |
| GDP | value of all final goods and services produced within an economy |
| infrastructure | roads, rails, telecommunications etc which help economic activity |
| interest | money paid to savers; reward for capital |
| merit goods | goods whose consumption benefits society |
| structural unemployment | unemployment where there is a mismatch between job skills and demand for labor |
| monetary policy | changing interest rates and the money supply to impact AD |
| protectionism | policies aimed at restricting flow of imports into a country |
