Lesson 2.1 Terms
The total value of all final goods and services produced in a country during one year.
Gross Domestic Produce (GDP)
The phase of the business cycle in which demand begins to decrease, businesses lower production, unemployment begins to rise, and gross domestic product (GDP) growth slows for two or more quarters of the calendar year.
recession
Debt for an organization. Bondholders lend money to an organization and are paid interest for use of their money.
bond
An increase in the general level of prices.
inflation
Approximate Total GDP produced by the United States (from the Comparison of GDP Chart)
$20 trillion
The portion of people in the labor force who are not working.
unemployment rate
The movement of the economy from one condition to another and back again. The four phases are prosperity, recession, depression, and recovery.
business cycle
Spending by businesses for items such as land, buildings, equipment, and new product development.
capital projects
The sales of durable and nondurable goods bought by consumers.
retail sales
According to the chart, which country has the highest Total GDP?
China
Salaries and wages as well as investment income and government payments to individuals.
personal income
The phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases, and gross domestic product (GDP) begins to rise again.
recovery
Ownership in a corporation.
stock
The total amount owed by the federal government.
national debt
According to the chart in the chapter, which country has the highest GDP per capita?
United States
The output per person, calculated by dividing gross domestic product (GDP) by the total population.
GDP per capita
The peak of the business cycle; it is a period 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 gross domestic product (GDP) growth increases.
prosperity
A financial situation that occurs when a government spends more than it takes in.
budget deficit
A number that compares cost-of-living prices in one year with prices in an earlier base year.
price index
What causes inflation?
When demand for goods and services is greater than supply.
The production output in relation to a unit of input, such as a worker.
productivity
The phase of the business cycle that is marked by a prolonged period of high unemployment, weak consumer sales, and business failures.
depression
A financial situation that occurs when a government spends less than it takes in.
budget surplus
A decrease in the general level of prices.
deflation
What (approximately) is the National Debt right now?
Approximately $40 trillion