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SS Ch 20 Les 1,2 Rev

Social Studies Chapter 20 Lesson 1 and 2 Quiz Review

QuestionAnswer
inflation a long term increase in the general level of prices
recession a period of declining economic activity lasting six or more months
depression state of the economy with high unemployment, severely depressed real GDP, and general economic hardship
real gdp GDP after adjustments for inflation
consumer price index (cpi) the average price of a certain amount of prices the government uses to track inflation
fixed income an income that remains the same each month and does not have the potential to go up when prices are going up
bull market period during which stock prices steadily increase
bear market period during which stock prices decline for a substantial period
what is a rising stock market fueled by investors bull market
what percent tells us economy is low 5%
what happens when inflation increases purchasing power goes down
antitrust law legislation to prevent monopolies from forming and to preserve and promote competition
merger a combination of two or more companies to form a single business
natural monolopy a market situation in which the costs of production are minimized by having a single firm produce the product
example of antitrust law Clayton Antitrust Act which banned businesses that hurt competition. stronger version of Sherman act
example of merger whole foods and wild oats. FTC thought merger would prevent competition so whole foods sold some of its stores and had to make changes.
example of natural monolopy when electric power companies become cheaper to promote competition
Created by: 2018grellerj
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