ch 25 definitions

Question 1

budget deficit

Answer 1

amount by which government spending is greater than government revenue

Question 2

macroeconomics

Answer 2

study of large economic systems such as those of a whole country or area of the world

Question 3

microeconomics

Answer 3

study of small economic systems that are part of national or international systems

Question 4

economic growth

Answer 4

increase in the level of output by a nation

Question 5

national income

Answer 5

value of income, output, or expenditure over a period of time

Question 6

gross domestic product (GDP)

Answer 6

market value of all final goods and services produced in a period (usually yearly), an internationally recognised measure of national income

Question 7

boom

Answer 7

peak of the economic cycle where GDP is growing at its fastest

Question 8

depression or slump

Answer 8

bottom of the economic cycle where GDP starts to fall with significant increases in unemployment

Question 9

downturn

Answer 9

period in the economic cycle where GDP grows, but more slowly

Question 10

recession

Answer 10

period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters

Question 11

overheat

Answer 11

if an economy overheats, demand rises too fast, causing prices and imports to rise, a situation that governments may try to correct by raising taxes and interest rates

Question 12

unsustainable growth

Answer 12

economic growth that is not possible to sustain without causing environmental problems