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Chapter 2

QuestionAnswer
What is the labor force? People who want to or are working in an economy.
The portion of the people in a workforce that are not working? unemployment rate
Is the steel that goes into the car part of the GDP? NO, only the final product is.
What does the GDP have to do with the economy? It measures the growth of, or decrease in the output of a nation.
What is the cycle of Recession-prospertiy called? the Business Cycle.
What does the consumer price index compare? It compares the price of an item, to the same item earlier that year.
What is Inflation. It would be the increase in the general price level of comon goods.
What is Deflation? It is the decrease in price of common goods, it doesn't happen very often.
What is a capital project? It is a business spending money in order to expand and be more efficent.
What is a budget surplus? A budget surplus is when the US goverment is spending less money that it is collecting in taxes.
Created by: JohnFreund
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