Macroeconomic Factors (AQA A-Level Business): Flashcards

Sustained rise in general level of prices

Tracks UK inflation by monitoring price changes

Inflation from excessive demand in the economy

Inflation when rising production costs push prices up

Workers demand higher wages→costs rise→prices rise→cycle repeats

Makes UK exports more expensive & less competitive globally

Decrease in general price level of goods and services

UK exports expensive for foreign buyers (bad for exporters)

UK exports cheaper for foreign buyers (good for exporters)

Value of one currency measured against another currency