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Flashcards in Chapter 2 test Deck (51):
1

an increase in the general level of prices

inflation

2

spending by businsses for items such as land, buildings, equipment and new products

capital projects

3

a financial situation that occurs when a government spends less than it takes in 

budget surplus

4

the production output in relation to a unit of input, such as a worker

productivity

5

the amount individuals pay to borrow for the purchase of a home

morgage rate

6

the phase of the business cycle in which demand begins to decrease, businesses lower production, unemployment begins to rise, and gross domestic product growth slows for two or more quarters of the calendar year

recession

7

the output per person, calculated by dividing gross domestic product (GDP) by the total production

GDP per capita

8

the peak of the business cycle, it is a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of gross domestic product growth increases

prosperity

9

the sales of durable and nondurable goods bought by consumers

retail sales

10

the cost of borrowing for large US corporations

corporate bond rate

11

ownership in a corporation

stock

12

the total value of all final goods and services produced in a country during one year

gross domestic product (GDP)

13

the movement of the economy from one condition to another and back again.  it has four phases including prosperity, recession, depression and recovery

business cycle

14

salaries and wages as well as investment income and government payments to individuals

personal income

15

the total amount owed by the federal government 

national debt

16

all people above age 16 who are actively workign or seeking work

labor force

17

the rate financial institutions are charged to borrow funds from the federal reserve banks

discount rate

18

salaries and wages as well as investment income and government payments to individuals

personal income

19

a number that compares prices in one year with prices in some earlier base year

price index / consumer price index

20

the yield on long term (20 year) US government debt obligations

treasury bond rate

21

the rate for six month time deposits at savings institutions

certificate of deposit rate

22

represents debt for an organization

bond

23

the total amount owed by the federal government

national debt

24

the yield on short term (13 week) US government debt obligations

t-bill rate

25

the portion of people in the labor force who are not working

unemployment rate

26

a financial situation that occurs when a government spends more than it takes in

budget deficit

27

an increase in the general price level

inflation

28

the phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases, and gross domestic product begins to rise again

recovery

29

the phase of the business cycle that is marked by a prolonged period of high unemployment, weak consumer sals, and business failures

depression

30

the movement of an economy from one condition to another and back again

business cycle

31

a decrease in the general price level

deflation

32

places where consumer incomes and buying power are increasing because of economic expansion

emerging markets

33

a phase marked by a long period of high enemployment, weak consumer sales and business failures

depression

34

production output in relation to a unit of input, such as a worker

productivity

35

what are the 4 phases of a business cycle?

  • prosperity
  • recession
  • depression
  • recovery

36

a period in which demand, production, and GDP growth decrease and unemployment begins to rise

recession

37

spending by businesses for items such as land, buildings and equipment

capital project

38

government spends less than it takes in

budget surplus

39

the phase in which unemployment decreases, demand for goods and services increases, and GDP begins to rise

recovery

40

the sales of durable and nondurable goods bought by consumers

retail sales

41

the portion of people in the labor force who are not working

unemployment rate

42

the rate banks make available to their best business customers, such as large corporations

prime rate

43

government spends more than it takes in

budget deficit

44

the total value of all final goods and services produced in a country in one year

GDP

45

the GDP divided by the total population of a country

GDP per capita

46

How do you calculate GDP per capita?

divide GDP by the population

47

a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date

bond

48

represents ownership in a corporation

stock

49

a period in which unemployment is low, businesses produce many goods and services, and wages are good

prosperity

50

a number that compares prices in one year with some earlier base year

price index

51

a decrease in the general level of prices

deflation