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Related Flashcards
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Cards In This Set
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The business cycle
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Recurring increases and decreases in the level of economic activity over periods of years; consists of peak, recession, through, and expansion phases
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Recession
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A period of declining real GDP, acoompanied by lower real income and higher unemployment
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Real GDP (gross domestic product)
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Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expresed as a decimal
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Nominal GDP
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Answer coming soon
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Unemployment
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The failure to use all available economic recourcesto produce desired goods and services; the failure of the economy to fully employ its labor force
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Inflation
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The rise of the general level of prices in an economy
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Modern economic growth
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The historically recent phenomenon in which nations for the first time have experianced sustained increases in real GDP per capita
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Savings
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The accumulation of funds that results when people in an economy spend less (consume less) then their incomes during a given time period
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Investment
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In economics, spending for the production and accumulation of capital and additions to inventories
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Financial investment
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The purchase of financial asset (such as a stock, bond, or mutural fund) or real asset (such as a house, land, or factories) or the building of such assets in the expectation of financial gain
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Economic investment
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In economics, spending for the production and accumulation of capital and additions to inventories
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Expectations
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The anticipations of soncumers, firms, and others about future economic conditions
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Shocks
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Sudden unexpected changes in demand or supply
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Demand shocks
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Sudden unexpected changes in demand
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Supply shocks
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Sudden unexpected changes in supply
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