Economic Definitions

Question 1

To conduct a business (Geschäfte führen)

Answer 1

To be in charge of a company/ business

Question 2

Trade offs (Kompromisse)

Answer 2

Alternatives that we give up when we make choices

Question 3

GDP - Gross domestic product

Bruttoinlandsprodukt

Answer 3

Total market value of all final goods and services produced within a country in a given period

Question 4

Inflation (Inflation/Aufblasen)

Answer 4

Prices go up but wages remain the same

Question 5

Deflation

Answer 5

Prices go down and the value of your currency goes up

Question 6

Stagnation (Stillstand)

Answer 6

Is a prolonged period of little or no growth in an economy

Growth of less than 2 to 3% and unemployment

Question 7

Recession (Rezession/Flaute)

Answer 7

The recession is the contraction phase of the business cycle. It begins after the economy reaches a peak of activity and ends as the economy reaches its trough.

Question 8

Bubble

Answer 8

The prices starts growing and growing and quickly and suddenly burst like a balloon. Usually refers to housing bubbles.

Question 9

Debased/Devalued Currency (abgewertete Währung)

Answer 9

Money looses its value, so you have to pay a lot more money than you used to..

Question 10

To run on a deficit

Answer 10

If you need more money than you have

Question 11

Depression

Answer 11

Is a prolonged period of economic recession, marked by a significant decline in income and employment