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chapter 2 economic activity

Terms

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GDA per capita
is calculated by dividing GDP by the total population
recovery
is the phase in which umemployment begins to decrease
business cycle
business cycle are the recurring ups and downs of GDP
productivity
is the output in a relation to a unit of input, such as a worker
retail sales
sales durable and nondurable goods bought by consumers
capital projects
involve spending by businesses for items such as new products
gross domestic product
is the total is the total dollar value of all final goods and services in a country during in one country
personal income
refers to salaries and wages as well as investment income and goverment payment to individuals
budget surplus
goverment may reduce taxes or increase spending on various programs
recession
is a period in which demand begins to decrease
deflation
means decrease in the general level of prices
price index
is a number that compares prices in one year with some earlier base year
inflation
is an increase in the general level of prices
bond
represents debt for an organization
national debt
the total amount owed by the federal goverment
depression
is a phase marked by a prolonged period of high umemployment,weak consumer sales,and business failures
prosperity
is a period in which most people who wants to work are working
unemployment rate
is the proportion of people in the labor force who are not working
stock
represents ownership is commonly called equity
budget deficit
whena goverment spends more than it takes in

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