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5 Cards in this Set
- Front
- Back
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Government intervention |
Aims to achieve the government's objectives by controlling and supporting business, passing legislation and taking action to control the economy. |
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Laissez-faire |
A policy towards the economy in which governments intervene as little as possible, minimise support for and control over industry and keep taxes and government spending to a minimum. |
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Balance of payments (current account) |
The account that records the UK's value of imports of goods and services and the value of its exports - a deficit exists when import values exceed export values and a surplus exists when export values exceed import values. |
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Fiscal policy |
The use by the Government of changes in tax rates or government spending to manage the economy. |
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Monetary policy |
The use of interest rates by the Bank of England (before 1997, the government was directly responsible for this) to keep inflation to a target of 2% (CPI). |
