GG: SECTION 6: External Influences on Business Activity

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Gross Domestic Product (GDP)

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The total value of output of goods and services in a country in one year.

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Recession

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A period of falling GDP.

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Inflation

Back

The increase in the average price level of goods and services over time.

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Unemployment

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Exists when people who are willing and able to work cannot find a job.

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Economic growth

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When a country's GDP increases, meaning more goods and services are produced than in the previous year.

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Balance of payments

Back

Records the difference between a country's exports and imports.

Front

Real income

Back

The value of income, which falls when prices rise faster than money income.

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Exports

Back

Goods and services sold from one country to other countries.

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Imports

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Goods and services bought in by one country from other countries.

Front

Exchange rate

Back

The price of one currency in terms of another.