Measuring Activity
Labor Activities
The Business Cycle
Chapter 2
Terms
100
Only these goods are counted when considering a countrys GDP.
What are final goods?
100
In the US, the labor force consists of all people above this age who are actively working or seeking work.
What is 16?
100
Even nations with abundant resources experience this.
What are economic bad times?
100
The total amount owed by the national government.
What is national debt?
100
The movement of the economy from one condition to another and back again.
What is business cycle?
200
The last one of these did not occur in the 1980s but from 1930-1940.
What is the last depression in the US?
200
The main cause of this is reduced demand for the goods and services being provided by various workers.
What is unemployment?
200
People who buy bonds
What are creditors?
200
A well-run business should have to do this
What is borrow money?
200
People with poor credit ratings pay higher/lower interest rate to borrow money than people with good credit.
What is higher?
300
In the United States, personal savings is rather ____.
What is low?
300
This type of business sell stock
What is a corporation?
300
This is characterized by a raise in GDP.
What is a period of economic recovery?
300
The total dollar value of all final goods and services produced in a country during one year.
What is Gross Domestic Product?
300
This is a number that compares prices in one year with some earlier base year.
What is price index?
400
Tuning up your car or mowing your own lawn would not be included when measuring this.
What is GDP?
400
Stock investments, bonds, and personal savings fund these.
What are capital projects?
400
When you buy this, you have lent money to the company.
What is a corporate bond?
400
Refers to money spent by a business for an item that will be used over a long period.
What is capital spending?
400
If wages increase faster than gains in productivity, the cost of producing goods...
What is increase and prices increase?
500
An increase in GDP per capita means...
What is the economy is growing?
500
This can sometimes stimulate economic activity if kept relatively low.
What is inflation?
500
The interest rate financial institutions are charged to borrow funds from Federal Reserve Banks
What is the discount rate?
500
Inflation can sometimes occur when the demand for goods and services is...
What is greather than the supply?
500
Sales of durable and nondurable goods bought by consumers is called.
What is retail sales?
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