Inflation is an increase in the overall price level of goods and services, with a corresponding decrease in the purchasing power of money. The primary cause of inflation is an increase in the supply of money relative to the availability of goods and services. Fiscal policy refers to the sending and taxing practices that the Federal government uses to achieve certain economic goals, especially economic growth and full employment.
Comparative advantage is the basis for specialization and trade between countries.
An exchange rate is the price of one nation's currency in terms of another nation's currency.