IELTS VOCABULARY

Inflation

Meaning: A general increase in prices and fall in the purchasing value of money.
Example: Rising inflation has made everyday goods more expensive for ordinary people.

Recession

Meaning: A period of temporary economic decline when trade and industrial activity are reduced.
Example: The country went into recession due to a sharp drop in consumer spending.

Economic Growth

Meaning: An increase in the amount of goods and services produced by an economy over time.
Example: Government investments in technology have boosted economic growth significantly.

Gross Domestic Product (GDP)

Meaning: The total value of all goods and services produced in a country during a specific period.
Example: India’s GDP has been steadily increasing over the last decade.

Taxation

Meaning: The system of collecting money from citizens to fund government activities.
Example: Higher taxation on luxury items can help reduce wealth inequality.

Subsidy

Meaning: Financial assistance given by the government to support industries or consumers.
Example: The government provides subsidies to farmers to encourage agricultural production.

Investment

Meaning: The act of putting money into something to earn a profit.
Example: Many people see real estate as a safe investment option.

 Unemployment

Meaning: The state of not having a job despite being able and willing to work.
Example: The global pandemic led to a rise in unemployment rates worldwide.

Disposable Income

Meaning: The amount of money left after paying taxes and essential expenses.
Example: With higher wages, people now have more disposable income to spend on leisure activities.

Cost of Living

Meaning: The amount of money needed to sustain a certain standard of living.
Example: The cost of living in big cities is much higher than in rural areas.