Gross Domestic Product (GDP)
In the term “Gross Domestic Product”, this word means the production must take place inside a country’s borders.
What is Domesic
This term describes how the economy sometimes grows and sometimes slows down in a repeating pattern.
What is the Business Cycle
A stable economy has this kind of GDP growth — not too fast and not too slow.
What is Steady GDP Growth
A person is counted as this if they have a job, even if they didn’t work that week because of vacation or illness.
What is Employed
When prices rise, this decreases — meaning your money can’t buy as much as before.
What is purchasing power?
A country with a high GDP usually has a strong one of these — its overall economy.
What is The Economy
In this phase of the business cycle, the economy is growing, businesses are producing more, and people are getting jobs.
What is Expansion
A stable economy has unemployment that stays low and doesn’t suddenly rise. This is called having what kind of unemployment?
What is stable Unemployment
A person is counted as this if they have a job, even if they didn’t work that week because of vacation or illness.
What is Unemployed
This cause of rising prices happens when people want to buy more goods than businesses can produce.
What is Demand Pull
GDP measures what a country produces during this amount of time.
What is a Year
This point in the business cycle is where the economy is at its highest level before it starts to slow down.
What is the Peak
A stable economy has inflation that rises slowly and predictably, usually around this percentage.
What is 2% Inflation
This term means almost everyone who wants a job has one, even though some unemployment still exists.
What is Full Employment
When prices rise over time, the money people save loses some of its value. This is an example of what rising prices do to savings?
What is Reduce their Value
When people buy things like cars, clothes, or food, this type of spending increases GDP.
What is Consumer Spending
This phase happens when the economy slows down, businesses produce less, and unemployment rises.
What is Recession
An economy is considered stable when GDP grows steadily, unemployment stays low, and this price measure increases slowly.
What is Inflation
This type of unemployment is when people are in-between jobs, whether that may be from moving or getting a new job.
What is Frictional Unemployment
When prices rise too quickly, it can hurt the economy by making it harder for families to afford goods and for businesses to plan. This describes what rising prices can do to economic stability?
What is Weaken It
This measure divides a country’s GDP by its population to estimate the average income or standard of living.
What is GDP Per Capita
The last stage of the business cycle, the lowest point of the economy before growing again.
What is Trough
Economic stability means three things: steady GDP growth, low unemployment, and this kind of inflation.
What is Low and Predictable Inflation
This type of unemployment occurs when businesses cut employees due to economic recessions
What is Cyclical Unemployment
When workers ask for higher wages because prices are rising, and businesses raise prices again to cover those higher wages, this cycle keeps pushing prices up. What is this cycle called?
What is Wage-Price Spiral