2.1
This includes all people over the age of 16 who are working or looking for work.
Labor Force
The money you earn & spend is one of the most important factors for economic growth. This is called
Consumer Spending
This comes after the recovery phase
Prosperity
The amount individuals pay to borrow for the purchase of a new home is known as the
Mortgage Rate
This compares the average prices of a “basket of goods” (that are commonly used by consumers) from year to year
Consumer Price Index (CPI)
the production output in relation to a unit of input (such as a worker).
Productivity
This rate refers to the portion of the labor force who are not working.
Unemployment Rate
A period in which:
Demand begins to decrease
Businesses lower production
Unemployment rises
GDP contracts (gets smaller) for 2 or more quarters (6 months)
Recession or contraction
the yield of long-term (20-year) US government debt obligations is known as the
treasury bond rate
A decrease in the level of prices is known as
deflation
The total dollar value of all final goods & services produced in a country in a particular year is known as
Gross Domestic Product
Name one way to cause inflation
When demand is greater than supply
When a large supply of money is spent for goods that are in short supply
A period in which:
Unemployment begins to decrease
Demand for goods & services increases
GDP begins to rise
Consumers regain confidence & begin buying again
Recovery
The yield on short-term (13-week) US government debt obligations is known as
T bill rate
An increase in the general level of prices is known as
Inflation
The sales includes the sales of durable & nondurable goods bought by consumers.
Retail
Name one way that productivity can be improved
Improvements in capital resources
Worker training, management techniques
A prolonged period of:
High unemployment
Weak consumer sales
Business failures
Rapidly falling GDP
Depression or Trough
The rate financial institutions are charged to borrow funds from the Federal Reserve banks is known as the
discount rate
In times of inflation the buying power of the dollar
decreases
This is the output per person, which is found by dividing GDP by the total number of people living in that country.
GDP per capita
This is how GDP is calculated
GDP = C + I + G + (X – M)
Most people who want to work have jobs
Businesses are producing goods & services in record numbers
GDP is growing
Demand for goods & services is high
It is a peak in the business cycle
Prosperity
This rate is for 6-month (or longer) deposits at a savings institution
CD Rate
When you invest, do you want high or low interest rates
high