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IBT Ch 02-03 ECONOMIC ACTIVITY Vocab 2

AB
deflationAlthough there is a decrease in prices, people have less money to buy propducts
depressionPhase marked by a long period of high unemployment, weak consumer sales, and business failures
inflationAn increase in prices and a decrease in the buying power of the dollar
productivityCan be increased by an improvment in management techniques
prosperityA period in which most people who want to work have a job, wages are good, and GDP is increasing
recessionA period when unemployment begins to rise, demand begins to decrease, and business lowers production
recoveryA phase represented by an increase in employment, demand for goods, and the GDP
unemployment rateThe portion of people in the labor force who are not working.
business cycleMovement of the economy from one condition to another and back again


Business Instructor
Belleville East High School
Belleville, IL

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