econ
The ratio of the amount of output produced to the amount of input is called
productivity
Government spending counted as part of GDP includes spending on
public education
when prices go up during the contraction phase
stagflation
An example of a coincident indicator
stock prices
Inventory investment is made up of
unsold goods that businesses have on hand
In the United States, the severe contraction that started in 1929 is commonly called the
Great Depression
"An Essay on the Principle of Population" was written by
Thomas Robert Malthus
During the 1970s, both unemployment and prices rose, creating
a recession
The total amount of goods and services that households, businesses, government, and foreign purchasers will buy at each price level is called
aggregate demand
measures of economic performance that usually change at the SAME TIME as real GDP changes
coincident indicators
The underground economy includes market activities that
go unreported because they are illegal
Efficiently run financial markets
help to increase productivity
As supple increases prices go down, and real GDP
increases
Measures of economic performance that usually change after real GDP changes are called
lagging indicators
measures of economic performance that usually change BEFORE real GDP changes
leading indicators
when aggregate demand equals aggravate supply
macroeconomic equilibruim
The idea that national wealth comes through exporting more goods than a country imports is called
mercantilism
Productivity increases when
more input produces more output
The highest point of a business cycle is called the
peak
An example of a nonmarket activity is
performing one's own home repairs
Before Adam Smith, many people believed that economic growth was caused by
population growth and higher taxation
The contraction of the mid-1970s was triggered in part by the
Oil Embargo of 1973
An example of a final good is
a book
As supply increases, prices go down, and real GDP
decreases
Jobs are relatively easy to find during an
expansion
Franklin D. Roosevelt's economic plan to help the country recover from the Great Depression
the New Deal
Great Depression causes
the New Deal was enacted
The Great Depression ended when
the United States entered World War II
An example of a durable good is a
truck
