Vocab
Undersupply of the product; prices are low, purchases are high
What is shortage?
Stage of business cycle that promotes high confidence in economy; increases spending; lowers unemployment; provides numerous jobs; “Business is Good”
What is prosperity?
Oversupply of the product; prices are high, purchases are low
What is surplus?
Stage of business cycle that decreases confidence in economy; reduces spending; increases unemployment
What is recession?
Point where the supply equals the demand
What is the equilibrium point?
Stage of business cycle that promotes little confidence in economy, limits spending, increases unemployment (this step of the business cycle can be skipped)
What is depression?
At a given time the quantity of goods and services sellers are willing to offer at various prices
What is supply?
Stage of the business cycle that displays increasing confidence in economy, increased spending and decreasing unemployment
What is recovery?
At a given time, the quantity of goods and services buyers or consumers are willing to purchase at various prices
What is demand?
Comprised of four stages: Prosperity, recession, depression and recovery
What is the business cycle?