Chapter 2(MA)
Terms
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- prosperity
- the period in which most people who want to work most people who want to work are working.
- personal income
- refers to salaries and wages as well as investment income and government payments to individuals.
- unemployment rate
- the portion of people in the labor force who are not working
- budget deficit
- occurs when a government spends more than it takes in
- GDP per capita
- output per person
- recovery
- the phase in which unemployment begins to decrease, demand for goods and services increases, and GPD begins to rise again.
- bond
- represents debt for an organization
- stock
- represents ownership in a corporation
- price index
- a number that compares prices in one year with some earlier base year.
- inflation
- an increase in the general level of prices.
- Gross Domestic Product (GDP)
- the total dollar value of all final goods and services produced in a country during one year.
- rescession
- a period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GPD growth slows for two or more quarters of the calendar year.
- capital project
- involve spending by businesses for items such as land, buildings, equipment, and new products
- national debt
- the total amount owed by the federal government
- retail sales
- the sales of durable and nondurable goods bought by consumers.
- budget surplus
- occurs when a government spends less than it takes
- productivity
- the production output in relation to a unit of input, such as a worker
- depression
- a phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures.
- business cycle
- the movement of economy from one condition to another and back again
- deflation
- means a decrease in the general level of prices