Unit 14. The business cycle

Balance of payments

• The number of jobs created by foreign investment.

• The total value of goods a country imports.

• The amount of government debt owed to other countries.

• The difference between a country's international receipts and payments

Demand

• The cost of producing goods and services.

• The maximum number of goods a company can produce.

• The willingness and ability of consumers to purchase goods and services

• The ability of companies to set prices for their products.

Expectations

• Beliefs about what will happen in the future

• Anticipating current trends based on present events.

• An assurance of what will occur without uncertainty.

• A firm commitment to a particular course of action.

Government actions concerning taxation and public expenditure

Supply

• The level of consumer satisfaction with available products.

• The number of goods consumers want to buy at any price.

• The rate at which businesses adopt new technology.

• The willingness and ability of business to offer goods or services for sale

Save

• To invest all available funds immediately.

• To spend money on luxury goods instead of essentials.

• To put money aside to spend in the future

• To take out loans to cover future expenses.

Gross Domestic Product (GDP)

• The total amount of money a country borrows annually.

• Total value of goods and services produced in a country over a period

• The sum of all imports and exports in a nation’s economy.

• The average income of individuals within a country.

Downturn

• A sudden increase in economic output.

• A temporary boost in market demand.

• A rapid expansion of business activity.

• A decline in economic activity

Government or central bank actions concerning the rate of growth of the money in circulation

Consumption

• The process of creating new products for the market.

• Purchasing and using goods and services

• The act of saving money instead of spending it.

• The development of goods for future use.