Unit 6

• Inflation is the increase in average prices of goods and services.
• Government's 3 main economic objectives are low inflation, low unemployment and balance of payments.
• Low inflation


  Low prices of goods and services, so people will buy more, more money to economy.
• Low unemployment


  High percent of people working so that they don’t rely on government funds.
• Balance of payments


  The difference between the imports and exports of a country balance out.
• Business cycle consist of growth, boom, recession and slump.
• 3 main ways governments can influence the economy are government expenditure, changing tax rates and interest rates.
• Interest rates


  The amount charged for borrowing money from a bank.
• Business activity can impact the environment in many different ways including air pollution, water and land pollution, and increase carbon emissions.
• Sustainable development is a development that does not compromise the living standards of future generations.
• Exchange rate is the price of one currency in terms of another currency.