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Principles Bus & Fin Economic Conditions

Mrs. Susan Smith

Key terms from Chp 2, Intro to Business textbook

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3.a number that compares prices in one year to an earlier base year (2 Words)
8.production output in relation to a unit of input, such as a worker
9.decrease in prices, but people have less money to buy, usually in recessions and depressions
11.when the government (or a company) takes in less revenue than it spends (2 Words)
13.when the government (or a company) takes in more revenue than it spends (2 Words)
16.represents debt for an organization
17.projects involving spending by businesses for land, buildings, equipment, new products (2 Words)
18.total dollar value of all final goods and services produced in a country in a year (3 Words)
19.period when demand begins to decrease, businesses lower production, unemployment begins to go up, GDP growth slows for 2 or more quarters of the calendar year
1.sales of durable and nondurable goods bought by consumers (2 Words)
2.output per person, calculated by dividing GDP by the total population (3 Words)
4.period when unemployment begins to go down, demand for goods and services rises, GDP begins to go up again
5.total amount owed by the Federal government (2 Words)
6.represents ownership in a corporation, commonly called equity
7.increase in the general level of prices when buying power drops
8.period when most people wanting to work are employed, businesses produce goods/services in record numbers, wages are good, and GDP growth rate increases
10.portion of the labor force who are not working, but willing and able to work and looking for work, but can't find a job (2 Words)
12.salaries, wages, investment income and government payments to individuals (2 Words)
14.movement of the economy from one condition to another and back again (2 Words)
15.phase marked by prolonged high unemployment, weak consumer sales, business failuers

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