Economic Episodes in US History

Depression

•  Deep and sustained drop in economic activity featuring high unemployment and negative GDP usually lasting more than a year.

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

• Period of increased purchasing and economic growth

• Period of time during which economic growth decreases rapidly

Recession

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

•  Deep and sustained drop in economic activity featuring high unemployment and negative GDP usually lasting more than a year.

• Period of increased purchasing and economic growth

• Period of time during which economic growth decreases rapidly

Boom

• Period of increased purchasing and economic growth

• Period of time during which economic growth decreases rapidly

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

•  Deep and sustained drop in economic activity featuring high unemployment and negative GDP usually lasting more than a year.

Bust

• Period of increased purchasing and economic growth

• Period of time during which economic growth decreases rapidly

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

•  Deep and sustained drop in economic activity featuring high unemployment and negative GDP usually lasting more than a year.

Inflation

• Rise in prices leading to a decline in the value of money

• A rate set for paying back borrowed money

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

• Money that a bank or business will allow a person to use and then pay back in the future

Interest Rates

• Rise in prices leading to a decline in the value of money

• A rate set for paying back borrowed money

• Significant decline in economic activity affecting production and employment, and producing lower household income and spending lasting longer than a few months

• Money that a bank or business will allow a person to use and then pay back in the future

Business Cycle

• Periods of economic  expansion followed by recession over a period of time

• A share of the value of a company which can be bought, sold, or traded as an investment

• A system of exchanges in which shares of companies are bought and sold.

• Money that a bank or business will allow a person to use and then pay back in the future

Stocks

• Periods of economic  expansion followed by recession over a period of time

• A share of the value of a company which can be bought, sold, or traded as an investment

• A system of exchanges in which shares of companies are bought and sold.

• Owing money to someone or something. The amount of money owed to a person, bank, country, company

Stock Market

• Periods of economic  expansion followed by recession over a period of time

• A share of the value of a company which can be bought, sold, or traded as an investment

• A system of exchanges in which shares of companies are bought and sold.

• “The Fed". The central bank of the US. Provides the nation with a safe, flexible and stable financial system.

Credit

• Money that a bank or business will allow a person to use and then pay back in the future

• Total number of people who do not have jobs but are looking for work

• A bank or creditor taking back property because the money owed for the property has not been paid

• An agreement in which a person borrows money to buy property (such as a house) and pays back the money over a period of years