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1.02 POBF

QuestionAnswer
GDP a country’s total dollar value of all final goods and services produced in one year.
GDP per capita GDP per person
unemployment rate the people of the labor force that are unemployed
personal income includes the total wages and salaries plus investment income and government payments to individuals
retail sales sales of goods and services purchased to indicate the spending patterns
budget deficit government spend more money than it collects
prosperity Employment rate and demand for products and services are high.
recession Unemployment rate is increasing and demand for products and services are lowering.
depression Unemployment rate is high and demand for products and services is lowering.
recovery Unemployment rate is lowering and demand for products and services is increasing.
inflation increase in the price of goods/services; the demand for products and services exceeds the supply, which may cause an increase in prices
deflation the prices of products and services are lowered, but people have less money for purchases
CPI Consumer Price Index; the value of a market basket of goods/services; comparing CPI from one year to the next gives a level of inflation
prime rate usually made available to banks’ best customers
discount rate offered by the federal reserve to financial institutions for loans.
t-bill rate the yield for short-term (13 weeks) government debt.
treasury bond rate the yield for long-term government debt.
mortgage rate amount borrowers pay for home loans
corporate bond rate the cost of loans for large US corporations.
certificate of deposit rate paid for deposits for a period of time ( 6, 12, or 18 months)
Created by: jpennington
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