ECONOMIC GROWTH
The steady increase in the production of goods and services.
What is economic growth?
The total value of all final goods and services produced in a country during one year.
What is Gross Domestic Product?
CPI stands for this.
What is Consumer Price Index?
This happens when GDP grows for 2+ successive quarters.
What is economic growth (or no recession)?
Output per person is a measure of this.
What is productivity?
This phase is at the peak of the business cycle.
What is prosperity?
Only these types of goods—like cars—are counted in GDP.
What are final goods?
Inflation is defined as an increase in this.
What is the general level of prices?
A recession is defined by GDP slowing for this long.
What is two or more successive quarters?
Divide GDP by this to calculate output per person.
What is total population?
These improvements lead to more output per worker.
What are capital resources, worker training, and management?
This component of GDP is calculated as exports minus imports.
What is net exports?
This group suffers most during inflation.
Who are people living on fixed incomes?
This is the peak stage in the business cycle.
What is prosperity?
These lead to increases in worker output.
What are better training and management?
Economic growth includes the steady increase in production of these.
What are goods and services?
Output per person is GDP divided by this.
What is the total population?
Item with highest CPI increase: Bread $4.00 → $4.40
What is Bread?
This phase of the business cycle follows a recession.
What is recovery?
These investments in education and training increase output per worker.
What are human capital investments?
This happens when producers increase profits and hire more workers.
What is economic growth stimulated by mild inflation?
When GDP increases year over year, it signals this.
What is a growing and healthy economy?
How mild inflation (2–3%) can help the economy.
What is producers expand and hire more?
This time period equals one quarter of a year.
What is 3 months?
Increased productivity can be achieved by investing in this.
What are capital resources (like machinery and technology)?