Gross National Product(GNP): Definition: Total value of goods produced and services provided by a country during one year

PHASES OF A BUSINESS CYCLE

• 1. Expansion
• 2. Peak
• 3. Contraction

PHASES OF A BUSINESS CYCLE

• a. Recession: Phase in the business cycle where real GDP is falling.
• b. Long lasting and painful recession or slowing of economic activity.
• c. Stagflation:Phase in the business cycle where real GDP is at its lowest
• 4. Trough

GDP and population Growth: An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

GDP and quality life: Generally, the more goods and services people have, the better off they are.

Capital Deepening: A situation where the capital per workers is increasing in the economy.

Patent: A government authority or license conferring a right or title for a set period.

Training Programs: Programs designed for training employes in specific skills.

Decreasing the scale of market for products: An output level that is small relative to total product demand.