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POB: Chapter 2: Measuring Economic Activity

Horizontales
A government may spend less than it takes in.
Involve spending by businesses for items such as land, buildings, equipment, and new product development.
A number that compares prices in one year with prices in some earlier base year.
The total value of all final goods and services produced in a country during one year.
Another way to measure growth
An increase in the general level of prices.
Represents debt for an organization.
A long period of high unemployment, weak consumer sales, and business failures
The total amount owned by the federal government.
Verticales
The portion of people in the labor force who are not working.
The phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.
Represents ownership in a corporation.
A government may spend mare than it takes in.
A decrease in the general level of prices.
Refers to salaries and wages as well as investment income and government payments to individuals
This movement of the economy from one condition to another and back again. 38
A period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth shows for two or more quarters of the calender year.