Chapter 12 Flashcards Preview

ECONOMICS Mid-Term '15 > Chapter 12 > Flashcards

Flashcards in Chapter 12 Deck (12):
0

Goods that last for a relatively long time, such as refrigerators, cars, and DVD players

Durable Good

1

Goods that last a short period of time, such as food, light bulbs, and sneakers

Nondurable Good

2

The loss of the value of capital equipment that results from normal wear and tear

Depreciation

3

The average of all prices in the economy

Price Level

4

A period of economic growth as measured by a rise in the real GDP

Expansion

5

Steady, long-term increase in real GDP

Economic Growth

6

The height of an economic expansion, when real GDP stops rising

Peak

7

Period of economic decline marked by falling real GDP

Contraction

8

The lower point in an economic contraction, when real gross domestic product stops falling

Trough

9

A prolonged economic contraction

Recession

10

a recession that is especially long and severe

Depression

11

Key economic variables that economists use to predict a new phase of the business cycle

Leading Indicators