7.4 How economic objectives and performance impact business activity

Question 1

Recession

Answer 1

A decline in real GDP of two or more quarters (at least six months)

Question 2

Business investment

Answer 2

Expenditure by a business on capital equipment, new technology, and research and development.

Question 3

Labor productivity

Answer 3

Average output per employee in a given time period.

Question 4

Deflation

Answer 4

The fall of the average price of goods or services.

Question 5

Working population

Answer 5

All those in a population of working age who are willing and able to work.

Question 6

Cyclical unemployment

Answer 6

Unemployment is caused by the low demand for goods and services during a period of slow economic growth or recession.

Question 7

Structural unemployment

Answer 7

Unemployment caused by the decline in important industries leading to significant job losses in one sector of industry.

Question 8

Frictional unemployment

Answer 8

Unemployment caused by workers losing or leaving jobs and taking a substantial period of time to find alternative employment.