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chapter 2

Terms

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GDP per capita
or output per person
Bond
represents debt for an organization
Inflation
is an invrease int he general level of prices
Gross Domestic Product
is the total dollar value of all final goods and services produced in a country during one year.
Deflation
means a decrease in the geneal level of prices
Productivity
is the production output in relation to a unit of input, such as a worker
Prosperity
is a period in which most people who want to work are working business produce goods and services in record numbers, wages are good
Business cycle
this economy from one condition to another
Capital Projects
invlolve spending by businesses for items such as land, buildings, equipment
Recession
is a period in which demand begins to decrease, businesses lower production, unemployment begins
budget surplus
is the result
Depression
is a phase marked by a prolonged period of high unemployment weak consumer sales
Budget deficit
a government can spend more than it takes in
Stock
represents ownership in a corporation
Retail sales
the sales of durable and nondurable goods bought by consumers
Unemployment rate
is a portion of people in labor force who are not working
Price Index
is anumber that compares prices in one year with some earlier base year
Personal income
refes to salaries and wages as well as investment income and government payments to individuals
national debt
total amount owned by the federal government
Recovery
is the phase in which unemployment begis to decrease

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