Chapter 34 Relationships Between Objectives and Policies

It will create a favorable economic climate for firms and improve people’s standard of living

The level of employment will decrease

People’s standard of living will deteriorate

People's standard of living will stagnate

a purchase in a marketplace.

an alternative that we sacrifice when we make a decision.

any good or service a consumer needs.

a factor of production.

During recession

During rising inflation (boom)

During an economic downturn

Higher unemployment

Less equality

Higher inflation

Money is spent to protect the environment (renewable energy, recycling, etc.)

Money is not spent to protect the environment (renewable energy, recycling, etc.)

During recession

During rising inflation (boom)

During an economic downturn

Higher unemployment

Less equality

Higher inflation

Falls; rises

Falls; falls

Rises; falls

Rises; rises

The exchange rate will depreciate as hot money from abroad leaves local banks (balance of payments will improve)

The exchange rate will appreciate as hot money from abroad flows into local banks (balance of payments will worsen)

The rate of inflation will accelerate