chapter2 terms
Terms
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- price index
- is a number that compares prices in one year with some earlier base year
- retail sales
- or the sales of durable and nondurable goods bought by consumers
- stock
- represents ownership in a corporation
- personal income
- refers to salaries and wages as well as investment income and government payments to individuals
- budget deficit
- in contrast, a government may spend more than it takes in
- depression
- is a phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures
- GDP per capita
- another way to measure economic growth
- inflation
- is an increase in the general level of prices
- business cycle
- movement of the economy from one condition to another and back again
- deflation
- means a decrease in the general level of prices
- recovery
- is the phase in which unemploymetn begins to decrease, and GDP begins to rise again
- budget surplus
- a government may spend less than it takes in
- national debt
- the total amount owed by the federal government
- prosperity
- is a period in which most people who want are working, businesses produce goods services in record numbers, wages are goods, and the rate of gdp growth
- productivity
- is the production output in relation to a unit of input, such as a worker
- bond
- represents debt for an organization
- unemployment rate
- is the portion of the people in the labor force who are not working
- capital projects
- involve spending by businesses items such as land, buildings, equipment, and new products
- gross domestic product
- is hte total dollar value of all final goods and services produced in a country during one year
- recession
- is a period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarters of the aclendar year.