Economic Terms

Question 1

Recession

Answer 1

This stage of the business cycle is when there is a decline in economic activity. Occurs when there is a widespread drop in spending.

Question 2

Business Cycle

Answer 2

The Business Cycle: The fluctuations in economic activity over time
Composed of concerted cyclical upswings and downswings in the broad measures of economic activity—output, employment, income, and sales. Due to domestic or international factors.

Question 3

Dissavings

Answer 3

Individual spending money beyond their available income

Question 4

Disposable income

Answer 4

Income you take back after tax