Podcast
Questions and Answers
What is prosperity?
What is prosperity?
What can increase productivity?
What can increase productivity?
Improvement in management techniques.
Deflation leads to an increase in people's ability to buy products.
Deflation leads to an increase in people's ability to buy products.
False
What is a budget deficit?
What is a budget deficit?
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Describe a recession.
Describe a recession.
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What is inflation?
What is inflation?
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What does interest represent?
What does interest represent?
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What does recovery indicate in economic terms?
What does recovery indicate in economic terms?
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What is the business cycle?
What is the business cycle?
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What does stock represent?
What does stock represent?
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What does GDP stand for?
What does GDP stand for?
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What are retail sales?
What are retail sales?
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What does CPI stand for?
What does CPI stand for?
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What is the unemployment rate?
What is the unemployment rate?
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Study Notes
Economic Indicators
- Prosperity: Characterized by high employment levels, good wages, record production rates by businesses, and increasing GDP.
- Productivity: Enhanced through effective management techniques leading to improved output.
- Deflation: Prices decline, but consumers have less financial capacity to purchase goods.
- Budget Deficit: Occurs when government expenditures surpass revenues within a specific timeframe.
Economic Cycles
- Recession: A downturn marked by rising unemployment, decreasing demand, and reduced business production.
- Recovery: A phase of economic improvement characterized by rising employment, increased demand for goods, and growing GDP.
- Business Cycle: Illustrates the fluctuations in the economy, transitioning between growth and contraction phases.
Financial Concepts
- Inflation: A rise in prices leading to diminished purchasing power of currency.
- Interest: Represents the cost associated with borrowing money, influencing economic activities.
Economic Measurements
- GDP (Gross Domestic Product): Reflects the overall economic activity by comparing the prices of a fixed selection of items across different years.
- Retail Sales: Measures the total dollar value of final goods and services produced annually by a company, indicating consumer spending trends.
- CPI (Consumer Price Index): The primary metric for assessing national output and monitoring inflation.
Labor Market Indicators
- Unemployment Rate: Represents the portion of the labor force actively searching for jobs but unable to secure employment, serving as a key indicator of economic health.
- Stock: Denotes ownership stakes in corporations, indicating investment value and market conditions.
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Description
This study guide covers key terms related to economic activity, including prosperity, productivity, and deflation. Use the flashcards to enhance your understanding of these concepts and their implications within the economy.
