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OTB CH 2

TermDefinition
deflation a decrease in the general price level
business cycle the movement of an economy from one condition to another and back again
capital project spending by businesses for items such as land, buildings, and equipment
GDP (gross domestic product) the total value of all final goods and services produced in a country in one year
budget surplus government spends less than it takes in
depression a phase marked by a long period of high unemployment, weak consumer sales, and business failures
bond represents debt for an organization
personal income salaries and wages as well as investment income and government payments to individuals
GDP per capita the GDP divided by the total population of a country
productivity production output in relation to a unit of input, such as a worker
recovery the phase in which unemployment decreases, demand for goods and services increases, and GDP begins to rise
inflation an increase in the general price level
stock represents ownership in a corporation
budget deficit government spends more than it takes in
unemployment rate the portion of people in the labor force who are not working
retail sales the sales of durable and non durable goods bought by consumers
prosperity a period in which unemployment is low, businesses produce many goods and services, and wages are good
price index a number that compares prices in one year with some earlier base year
recession a period in which demand, production, and GDP growth decrease and unemployment begins to rise
national debt the toal amount owed by the federal government
Created by: mlmoore14
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