chapter 3 test study guides Flashcards
(22 cards)
gross domestic product (GDP)
the total value of the goods and services produced in a country in a given year
standard of living
the level of material comfort as measured by the goods and services that are available
inflation
a general increase in the cost of goods and services
deflation
a general decrease in the cost of goods and services
budget deficit
when the government spends more on programs than it collects is taxes
budget surplus
a situation in which a government revenue exceeds its expenditures during a one-year period
national debt
the total amount of money a government owes
business cycle (wave)
the ruse and fall of economic activity over time
prosperity
a peak of economic activity
recession
a slow down of economic activity
depression
a deep recession that affects the entire economy and lasts for several years
recovery
a rise of business activity after a recession or depression
what were the 4 types of economic shifts that the US experienced
1600s-bartering and trading, 1700s-farming,1850s-the Industrial Revolution, present day- the invention of computers
what does the unemployment rate measure
the number of people who are able and willing to work but can’t find a job
what impact does supply and demand have on inflation
demand goes up, supply goes down
what impact does supply and demand have on deflation
demand goes down, supply goes up
what are the 4 stages of the business cycle
prosperity, depression, recession, recovery
what are some ways to measure a nation’s economic activity
gdp, national debt, inflation, standard of living, unemployment
what is the main source of income for our government
taxes
what caused the Great Depression and what are the characteristics that exist during a depression
October 29, 1929- stock market crashed, banks failed (ran out of money), high unemployment, low production of goods and services
who is the federal reserve and what do they do
government agency that guides the economy, regulates the amount of $ in circulation, control interest rates, control amount of $ loaned
what are the 4 types of unemployment
temporary, seasonal, changes in industry (job not needed), entire economy
