The Impact Of The Business Cycle Flashcards
1
Q
What is the economy?
A
The state of a country or region in terms of production, consumption of goods and services and the supply of finance
2
Q
What is economic activity?
A
The production, distribution and consumption of commodities
3
Q
What is economic growth?
A
An increase in the amount of goods and services produced/provided
4
Q
What is a recession?
A
A temporary period of economic decline in which trade and industrial activity are reduced significantly
5
Q
What is a slump?
A
The lowest point at which profits fall in a recession - demand is low but supply is high
6
Q
What is a peak boom?
A
The highest point of economic growth within a recovery stage - demand is high and supply is low
