| A | B |
|---|
| Automatic stabilisers | Automatic fiscal changes arising automatically as the economy moves through different stages of the business cycle - for example a fall tax that the government takes out of the circular flow in a recession. |
| Budget deficit | Occurs when government spending is greater than tax revenues. The UK budget deficit in 2009-10 is forecast to be more than 12% of GDP |
| Business confidence | Expectations about the future of the economy – vital in business decisions about how much to spend on new capital goods |
| Claimant Count | The number of people claiming unemployment-related benefits. Since October 1996 this has been defined as the number of people claiming Jobseeker's Allowance |
| Constant prices | Constant prices tells us that the data has been inflation adjusted |
| Corporation Tax | A tax on the profits made by companies |
| Credit crunch | Situation where banks across the economy reduce lending to each other due to falling confidence that loans will be repaid. This restricts the flow of money around the economy and can result in less credit being available for consumers and businesses, resulting in an increase in the cost of obtaining credit. |
| Current account of the Balance of Payments | The overall balance of credits minus debits for trade in goods, trade in services, investment income and transfers. |
| Deflation | A persistent fall in the general price level of goods and services |
