The Language of Our Economy

Kevin Yu
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M A C R O E C O N O M I P P R E C I A T I O
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C S O
6

P U R C H A S I N G

M I

X E D

E C O N O M Y S U M
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I N

F O R E I G N E

D E F A U L T E R E S T R O N A T

F O R E I

G N

D E B T R M E P T E R M I
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S U B P R I

L O A N S

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N F L A T I

O N
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X C H N

P O W R
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R E C E S S I E G N I S O N D
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D P

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F O R E I

E X C H A N G E R A T E I N C O M E

R A T E G E M A D E P R S S I O N

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C O M P A R I E C I A T I O

R E A L X

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B A L A N C E N E S S

O F

T R A D E K

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B U S I

C Y C L E T

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N V E S T M E N T

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15 16 18 19 20 21

Across The study of the economy as a whole an economic system in which individuals and businesses make their own decisions but with a degree of government involvement The inability to repay borrowed money The amount of money a country has borrowed from overseas sources Loans to borrowers who have a poor credit rating. They are offered at a higher rate of interest than for prime loans The length of time allowed to repay a loan A general rise in prices, causing money to lose its value A relatively mild contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth The ratio of one currency to another Loan interest rates calculated after adding fees and charges to the lender's advertised rate What an income will actually purchase in terms of the quantities of goods and services, after allowing for the effects of inflation The difference between the value of a nation's imports and the value of its exports The cyclical fluctuations in the level of economic activity that an economy goes through over time The purchase of new plant and equipment

Down An upward movement of the Australian dollar (or any currency) against another currency 3 Also known as the (CPI). Australia's main measure of inflation 4 The actual quantity of goods and services that may be bought with a given amount of money 6 The annual cost of borrowing credit or the annual return on invested sabings; the price of money 7 Also known as the forex or fx market. This market determines the price of one currency relative to another 14 A downward movement of the Australian dollar (or any currency) against another currency 17 A severe contraction in the level of economic activity resulting in many business failures, high and sustained levels of unemployment and sometimes falling prices 2