Principles of Business Chapter 2

What does GDP (Gross Domestic Product) measure?

• unemployment rate

• value of goods & services produced by a country

• budget deficit

• recession

All of the people in a nation who are capable of working and want to work.

• Prosperity

• Commerce

• Labor Force

• National debt

Condition of economy with low unemployment & high production of goods and services.

• Prosperity

• Recession

• Depression

• Recovery

The rise and fall of economic activity over time.

• bossy

• borrow

• budget

• business cycle

Inflation reduces the purchasing power of money.

• True

• False

Every Business Cycle includes a depression.

• True

• False

An increase in the cost of goods and services is called

• Depression

• Prosperity

• Inflation

• Deflation

The total value of goods and services produced in a country in 1 year

• GDP per Capital

• Inflation

• GDP

• Deflation

The general decrease in the cost of goods and services

• Inflation

• Stagflation

• Deflation

• Aggravation

Central Bank of US, responsible for monetary system. Also called "The Fed"

• The Big Bank of Money

• Fort Knox

• Federal Reserve System

• U.S. Bank