Economic Measures
What does GDP stand for?
Gross Domestic Product
Name the 4 phases of the business cycle
Prosperity, Recession, Depression, Recovery
What is inflation?
A general rise in prices over time
What does equity mean in business?
Ownership in a company (like stocks)
What is a budget surplus?
When government income is greater than spending
What does GDP per capita measure?
The average output of goods and services per person
Which phase has high GDP, high demand, and low unemployment?
Prosperity
What is deflation?
A general decrease in prices
What is the bond market?
A place where investors buy and sell bonds (loans to businesses/government)
What is a budget deficit?
When government spending is greater than income
If unemployment is high, what does that usually say about the economy?
The economy is weak/slowing down
What is the difference between a recession and depression?
A recession is a mild decline in the economy, while a depression is a severe, long-lasting decline
What is one major cause of inflation?
Demand for goods rises faster than supply
What is the stock market used for?
Buying and selling shares of companies
What is the national debt?
The total money the government owes from borrowing
What does productivity measure?
How efficiently resources (like workers) produce goods and services
During which phase does GDP begin to rise after falling?
Recovery
What index is used to measure inflation?
The Consumer Price Index (CPI)
What is consumer debt?
Money owed by individuals, like credit card debt or loans
What are capital projects?
Long-term investments like buildings, roads, or infrastructure
Name two ways retail sales are important to the economy
They show consumer spending trends and help predict future growth
True or False: One phase of the business cycle lasts forever
False
How do interest rates typically change during inflation?
They rise, making borrowing more expensive
What is business debt?
Money businesses borrow to fund operations or expansions
Why are personal savings important to the economy?
They provide funds for investment in businesses, loans, and economic growth