POB Chapter 2

2. the movement of the economy from one condition to another and back again
5. represents ownership in a corporation
6. involve spending by businesses for items such as land, buildings, equipment and new product development
7. when a government spends less than it takes in
10. a number that compares prices in one year with prices in some earlier base year
12. the production output in relation to a unit of input, such as a worker
13. a period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for 2 or more quarters of the calendar year
14. the total value of all final goods and services produced in a country during one year
15. the sales of durable and nondurable goods bought by consumers
17. a long period of high unemployment, weak consumer sales and business failures
18. when a government spends more than it takes in
19. the total amount owed by the federal government

1. salaries and wages as well as investment income and government payments to individuals
3. the portion of people in the labor force who are not working
4. an increase in the general level of prices
8. output (goods and services produced) per person
9. a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of GDP growth increases
11. the phase in which unemployment begins to decrease, demand for goods and services increases and GDP begins to rise again
16. a decrease in the general level of prices
18. represents debt for an organization