CHAPTER 3 NOTES
INTRO TO BUSINESS
Measuring Economic Activity
________________ _____________are figures used to measure economic performance.
3 things economic indicators measure:
● _________ much a country is producing
● Whether the economy is _____________.
● How it ______________ to other countries
Gross Domestic Product (GDP)
The total value of ___________ and ___________ produced in a given year.
The four main areas used when calculating GDP are:
1. ___________ goods and services
2. ___________ goods and services
3. ___________ goods and services
4. ___________ goods and services
__________________ _____ ______________ are the amount of goods and services an
individual can buy.
Unemployment Rate
Measures the number of people who are ______ to work, but don’t have a job during that time.
List four reasons for being unemployed.
1.
2.
3.
4.
Rate of Inflation
____________ is a general increase in the cost of goods and services.
____________ is a general decrease in the cost of goods and services.
To avoid both inflation and deflation the U.S. tries to maintain ___________ ___ __________
rate of economic growth.
National Debt
A budget ______________ occurs when a government spends more than it collects in taxes.
The total amount a government owes is called the _______________ _____________.
A budget ______________ occurs when a government spends less than it collects in taxes.
The Business Cycle
The __________ and _________ of economic activity over time.
The four phases of the business cycle:
1.
2.
3.
4.
In a global economy one country’s economy can affect its ___________partners.
____________ is the peak of economic activity.
During a _________________ economic activity starts to slow down.
A recession that affects the entire economy and lasts for several years is called a
_____________.
A ______________is a rise in business activity after a recession or depression.