Measuring Economic Activity Ch. 2
Terms
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- GDP per capita
- output per person
- national debt
- total amount owed by the federal government
- stock
- represents ownership in a corporation
- budget surplus
- a government may spend less than it takes in
- capital projects
- involve spending by businesses for items such as land, buildings, equipment, and new products
- personal income
- refers to salaries and wages as well as investment income and goverment payments to individuals
- bond
- represents debt for an organization
- business cycle
- movement of the economy from one condition to another and back again
- recession
- 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 calendar year
- unemployment rate
- one economic statistic of concern
- prosperity
- a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of GDP growth increases
- depression
- a phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures
- productivity
- the production output in relation to a unit of input, such as a worker
- budget deficit
- a government may spend more than it takes in
- deflation
- a decrease in the general level of prices
- inflation
- an increase in the general level of prices
- gross domestic product
- total dollar value of all final goods and services produced in a country during one year
- price index
- a number that compares prices in one year with some earlier base year
- retail sales
- the sales of durable and nondurable goods bought by consumers
- recovery
- the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again