2.3 The economic cycle Flashcards
(10 cards)
1
Q
Economy
A
People and businesses that buy and sell products
2
Q
Economic activity
A
Amount of buying and selling that takes place in time
3
Q
What happens to economic activity overtime?
A
Level of economic activity changes
4
Q
Boom
A
High economic activity, increase in sales
5
Q
Slump
A
Low economic activity, decrease in sales
6
Q
How can a Boom be measured?
A
Employment & high consumer spending
7
Q
How can a Slump be measured?
A
Unemployment & low consumer spending
8
Q
Curved line
A
Actual rate of growth
9
Q
Constant line
A
Average rate of growth
10
Q
Interest rate
A
The percentage of a loan that is charged as the price of borrowing
