Chapter 2 Study Guide! Economic Activity! – Flashcards
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Prosperity
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A period in which most people who want to work have a job, wages are good, business are producing record number of goods, and the rate of GDP is increasing.
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Productivity
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Can be increased by an improvement in management techniques.
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Deflation
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Although there is a decrease in prices, people have less money to buy products.
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Budget Deficit
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A situation where a government spends more money than it takes in over a period of time.
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Recession
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A period in which unemployment begins to rise, demand begins to decrease, and businesses lower production.
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Inflation
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An increase in prices and a decrease in the buying power of the dollar.
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Interest
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Represents the cost of money.
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Recovery
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A phase represented by an increase in employment, demand for goods, and the GDP.
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Business Cycle
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Movement of the economy from one condition to another.
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Stock
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Represents ownership in a corporation.
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GDP
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Compares the prices of a group of selected items each year to some earlier year.
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Retail Sales
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The total dollar value of all final goods and services produced each year in a company.
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CPI
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The most widely used measure of national output.
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Unemployment rate
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The percentage of people in the labor force who are wiling to work, are looking for work but are unable to find work.
