11 terms

Economics- Room 126 GED set 1

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Business cycle
The increasing of business activity through four phases: expansion, peak, contraction, and trough.
Expansion
The phase of the business cycle characterized by an increase in business activity.
Contraction
A reduction in business activity.
Inflation
A general increase in the prices due largely to a decline in the value of money.
Demand-pull inflation
A condition of higher prices due to demand for goods in short supply.
Cost-push inflation
Higher prices caused by a push for higher wages (wage-price spiral)
Recession
A period when production declines and people have less money.
Depression
The condition that results from a severe reduction of business activity.
Exports
Goods produced in one country and sent to another country for sale.
Imports
Goods brought into a country that are produced in another country.
Balance of trade
The difference between the total value of goods and services exported and the total value of goods and services imported.
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