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11 Cards in this Set
- Front
- Back
gross domestic product/GDP
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the total dollar value of all final goods and services produced in our country during a year.
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GDP includes what 3 major categories?
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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 |
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base year
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the year chosen to compare an item
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GDP per capita
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is calculated by dividing GDP by total population
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business cycle consist of what 4 stages?
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prosperity, recession, depression, recovery
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prosperity
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phase of the business cycle when most people who want to work are working and businesses produce goods and services in record numbers
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recession
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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.
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depression
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phase marked by a prolonged period of high unemployment, weak sales of goods and services, and business failures.
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recovery
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phase which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.
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inflation
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sustained increase in the general level of prices
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deflation
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a decrease in the general level of prices
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