business chapter 3

Question 0

What does the business cycle show

Answer 0

Economic fluctuations

Question 1

What are the phases of the business cycle

Answer 1

Growth, prosperity, recession, and depression

Question 2

What are economic fluctuations

Answer 2

The ups and downs of business activity

Question 3

Expansion

Answer 3

Growth/ recovery

1. the economy is on the rise
2. People are spending & making money

Question 4

Prosperity

Answer 4

Peak

1. Highest level of economic activity
2. Very high employment rate
3. money being made and spent

Question 5

Recession

Answer 5

Contraction

1. Decrease economic activity
2. unemployment increases
3. People tentative to spent money

Question 6

Depression

Answer 6

Trough

1. Lowest Level of business activity
2. Unemployment extremely high
3. Banks fail
4. Businesses fail

Question 7

Economic indicators

Answer 7

Data of statistics that measure economic activity and business cycles

Question 8

What are the 3 economic indicators

Answer 8

GDP, inflation, and unemployment

Question 9

Standard of living

Answer 9

Measure of how well average people with in an economic system live

Question 10

GDP

Answer 10

Gross domestic product; dollar value of all goods and services produced in that nation in a single year

Question 11

Higher productivity =

Answer 11

Higher standard of living

Question 12

Inflation

Answer 12

1. Prolonged rise in the level of prices for goods and services
2. reduces value of dollar/ purchasing power
3. Cost more to keep up with standard of living

Question 13

Inflation rate

Answer 13

% by which average level of prices in an economy rise

Question 14

Unemployment

Answer 14

1. # of people in country without jobs
2. 10% is very high
3. usually around 6-7% in the us

Question 15

Value if economic indicatiors

Answer 15

1. Not always exact rates
2. Government uses them to plan policies
3. Businesses use them to know when to proceed or cut back on orders and person