Aqa Gcse Economics 2 How The Economy Works Study Guide Rated A+

demand-pull inflation {Ans: increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand}economic growth {Ans: the ability of the economy to increase the production of goods and services}Negative externalities {Ans: Occurs when a product or decision has a bigger cost to society in relation to its private cost.}Interdependence {Ans: The reliance of countries on each other resulting from specialisation and free trade.}Inflation {Ans: a general increase in prices and fall in the purchasing value of money.}Fiscal policy {Ans: Government's use of spending and tax to influence an economy.}