Bmt Chapter 4

Front 1

gross domestic product/GDP

Back 1

the total dollar value of all final goods and services produced in our country during a year.

Front 2

GDP includes what 3 major categories?

Back 2

1. what consumers spend for food, clothing, and housing

2. what businesses spend for buildings, equipment, and supplies

3. what government agencies spend to pay employees and to buy supplies

Front 3

base year

Back 3

the year chosen to compare an item

Front 4

GDP per capita

Back 4

is calculated by dividing GDP by total population

Front 5

business cycle consist of what 4 stages?

Back 5

prosperity, recession, depression, recovery

Front 6

prosperity

Back 6

phase of the business cycle when most people who want to work are working and businesses produce goods and services in record numbers

Front 7

recession

Back 7

where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows for 2 or more quarters of the calender year.

Front 8

depression

Back 8

phase marked by a prolonged period of high unemployment, weak sales of goods and services, and business failures.

Front 9

recovery

Back 9

phase which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.

Front 10

inflation

Back 10

sustained increase in the general level of prices

Front 11

deflation

Back 11

a decrease in the general level of prices