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Vocabulary 1.02

PBF Vocabulary 1.01

QuestionAnswer
Gross Domestic Product the dollar amount of all final goods and services produced within a country's borders in a year.
GDP per capita total value of goods and services produced in a year divided by the population
Productivity (economics) the ratio of the quantity and quality of units produced to the labor per unit of time
Personal income refers to salaries and wages as well as investment income and government payments to individuals
Retail sales the sales of durable and nondurable goods bought by consumers
Capital projects involve spending by businesses for items such as land, buildings, equipment, and new products
Stock a certificate documenting the shareholder's ownership in the corporation
Bond Loaned money to company or government entity
Business cycle recurring fluctuations in economic activity consisting of recession and recovery and growth and decline
Prosperity an economic state of growth with rising profits and full employment
Recession the state of the economy declines
Depression a long-term economic state characterized by unemployment and low prices and low levels of trade and investment
Recovery the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again
Inflation a general and progressive increase in prices
Deflation a contraction of economic activity resulting in a decline of prices
Created by: ricetuckera on 2011-02-02



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