Work with a partner. Aggregate de2m. anddepr3e

Aggregate de2m. anddepr3e. ssioninteres4t.r bautessiness cycle5. reflation6. real business cycle theory7. stagflation8. unemploymenta) The rate of interest at which economic activity

Is driving prices neither higher nor lower.

B) A macroeconomic policy of increasing aggregate demand in

The economy in order to reduce unemployment.

C) The argument that the business cycle is caused not by fluctuations

In aggregate demand, but by random shocks in the conditions

Under which producers supply their products (supply-side

Economics). This account was born of the oil crisis of the 1970s.

When world oil prices rose dramatically, leading to recession.

D) The sum of all expenditures within an economy, making up

gross domestic product. The main categories are consumers’

Expenditure on goods and services; government spending; investment

In capital goods and stocks and exports of goods and

Services, less expenditure on imports of goods and services.

E) The existence of a section of the labour force able and willing

To work, but unable to find gainful employment. Unemploy-

Ment is measured as the percentage of the total labour force

Out of work.

F) Regular fluctuations in the level of national income. The business

Cycle is a well-observed economic phenomenon, though