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business vocab 2

TermDefinition
bond a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date
budget deficit occurs when a government spends less then it takes in
business cycle the movement of the economy from one condition to another and back again
four cycles of the business cycle prosperity, recession, depression, and recovery
capital project spending by businesses for items such as land, buildings, equipment, and new products
deflation a decrease in the general level of prices
depression the phase of the business cycle that is marked by a prolonged period of high unemployment, head consumer sales, and business failures
gross domestic product the total dollar value of all final goods and services produced in a country during one year
gdp per capita the output per person, calculated by dividing gdp by the total production
inflation an increase in the general level of prices
national debt the total amount owned by the federal government
personal income salaries and wages as well as investment income and government payments to individuals
price index a number that compares prices in one year with some earlier base year
prosperity the peak of the business cycle, its 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 gap growth increases
productivity the production output in relation to a unit of input such as a worker
recession the phase of the business cycle in which demand begins to decrease, businesses lower production. unemployment begins to rise, and gdp growth slows for two or more quarters of the quarter year
recovery the welcome phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases and gdp begins to rise again
stock ownership in a cooperation
unemployment rate the portion of people in the labor force who are not working
Created by: kisland17
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