Measurement
Consumer Spending
The Business Cycle
Economic Conditions Change
Other Measures of Business Activity
100
The total dollar value of all final goods and services produced in a country during one year is called
GDP
100

The length of time GDP measures a country’s economic output during

one year

100

A period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year is called:

Contraction/Recession

100

An increase in the general level of prices

Inflation

100

_____________ represents ownership or equity in a corporation

Stock

200
The portion of people in the labor force who are not working is called
unemployment rate
200
If the GDP increases from year to year, the economy is ________.
growing or increasing
200

The period in a business cycle in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good and the rate of GDP growth increases

Peak/Prosperity

200

The major influence on the level of interest rates is:

The supply and demand for money

200

What does GDP stand for?

Gross Domestic Product

300
The output per person is also called
GDP per capita
300

The indicator of general consumer spending patterns in the economy

Retail Sales

300

The phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again is called:

Expansion/Recovery

300

A decrease in the general level of prices is called:

Deflation

300
This represents debt for an organization
Bond
400
The production output in relation to a unit of input, such as a worker is called
Productivity
400

Productivity would likely increase as a result of: (A) higher taxes (B) expanded production technology (C) decreased training programs (D) lower government spending

(B) expanded production technology

400

A phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures is called:

Trough/Depression

400

A number that compares prices in one year with some earlier base year is called:

Consumer Price index

400
When the governments spends more than it takes in, this is called:
budget deficit
500
This refers to salaries and wages, as well as, investment income and government payments to individuals
Personal Income
500

This involves spending by business for items such as land, buildings, equipment, and new products is called:

Capital Projects

500

Deflation occurs in which TWO phases of the business cycle?

Contraction/Recession and Trough/Depression

500
The total amount owed by the federal government is called:
National debt
500
When the government spends less than it takes in, this is called:
budget surplus
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