POB chapter 4
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10 terms
Terms | Definitions |
|---|---|
 Gross Domestic Product (GDP) | total dollar value of all final goods produced in our country during one year |
| Base Year | Year chosen to compare an item |
| GDP per capita | calculated by dividing GDP by the total population |
| Business Cycle | The movement of the economy from one condition to another and back again |
| Prosperity | phase of the business cycle when most people who want to work are working and businesses produce goods and services in record numbers |
| Recession | period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows |
| Depression | a phase marked by a prolonged period of high unemployment, weak sales of goods and services, and business failures |
| Recovery | a phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again |
| Inflation | a sustained increase in the general level of prices |
| Deflation | means a decrease in the general level of prices |
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