Introduction to Business, Chapter 3 Vocabulary – Flashcards
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Gross Domestic Product
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Total value of goods/services produced in a country in a given year
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Standard of Living
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Level of material comfort as measured by the goods and services that are available
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Inflation
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General increase in the price of goods/services
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Deflation
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General decrease in the price of goods/services
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Budget Deficit
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When the government spends more money on programs than it collects in taxes
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National Debt
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Total amount of money a government owes
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Budget Surplus
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When a government's revenue exceeds it expenditures during a one-year period
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Business Cycle
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Rise and fall of economic activity over time
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Prosperity
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Peak of economic activity
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Recession
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Economic activity slows down
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Depression
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Deep recession that affects the entire economy and lasts several years
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Recovery
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Rise in business activity after recession or depression
