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chapter 2key terms

Terms

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recession
a period in which demand begins to decrease,businesses lower production unemployment begins to rise and GDP growth slows for 2 or more quarters of the calendar year
national debt
total amount owed by federal govt
inflation
an increase in the general level of prices
unemployment
1 economic statistic of concern
bond
represents debt for an organization
price index
a number tha comares prices in 1 year with some earlier base year
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 of GDP growth increases
capial 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 payment to individuals
depression
a phase marked by a prolonged peiod of high unemployment,weak consumer sales, and business failures
budget deficit
govt may spend more than it takes
retail sales
the sales of durable and nondurable gods bought by consumers
budget surplus
the result
stock
repersents ownership in a corproration
recovery
the phase in which unemployment begin to decrease, demand for goods and services increases,and GDP begins to rise again
gross domestic product
the total dollar value of all final goods and services produced in a country during 1 year
business cycle
movement of the economy from 1 condition to another and back again
GDP per capita
out put per person,calculated by dividing GDP by the total population

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