Ch.3 Economy

Question 1

Movement of an Economy from one condition to another and back again.

Answer 1

Business Cycle

Question 2

Period in which demand, production, & GDP growth decrease & unemployment begins to rise.

Answer 2

Recession

Question 3

Phase marked by a long period of high unemployment, weak consumer sales, and business failures.

Answer 3

Depression

Question 4

Represents debt for an organization.

Answer 4

Bonds

Question 5

Phase in which unemployment decreases, demand for goods & services increases, & GDP begins to rise.

Answer 5

Recovery

Question 6

Sales of durable & non-durable goods bought by consumers.

Answer 6

Retail Sales

Question 7

Total value of all final goods and services produced in a country in one year.

Answer 7

Gross domestic product (GDP)

Question 8

Salaries & Wages as well investment income & government payment to individuals.

Answer 8

Personal Income

Question 9

Period in which unemployment is low, businesses produce many goods and services, and wages are good.

Answer 9

Prosperity

Question 10

Spending by businesses for items such as land, buildings, and equipment.

Answer 10

Capital Project

Question 11

Compares prices in one year with prices in some earlier base year.

Answer 11

Price Index

Question 12

The cost of money

Answer 12

Interest Rates