Chapter 2
Terms
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- budget deficit
- a government may spend more than it takes in
- Productivity
- the production output on relation to a unit of input such as a worker
- 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
- budget surplus
- a government may spend less than it takes in
- GDP per capita
- output per person
- capital projects
- involve spending by businesses for items such as land, buildings, equipment, and new products
- inflation
- an increase in the general level of prices
- national debt
- the total amount owed by the federal government
- personal income
- refers to salaries and wages as well as investment income and government payments to individuals
- Depression
- a phase marked by a prolonged period of high unemployment, weak consumer salws, and business failures
- deflation
- means a decrease in the general level of prices
- unemployment rate
- one economic statistic of concern
- bond
- represents debt for an organization
- price index
- a number that comparese prices in one year with some earlier base year.
- retail sales
- the sales of durable and nondurable goods bought by consumers
- Gross domestic product or gdp
- the total dollar value of all final goods and services produced in a country during one year
- stock
- represents ownership in a corporation
- Recession
- a period in which demand begins to decrease, businesses lower production, unemployment begins, and gdp growth slowsfor two or more quaters of the calender year
- recovery
- the phase in which unemployment begins to decrease, demand for goods and services increases and gdp begins to rise again
- business cycle
- movement of the economy from one condition to another and back again