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TFP
output per unit of all production units
Sole Proprietorship
simplest form of business organization; has 1 owner
Partnership
2 or more owners
Corporation
legal construct owned by shareholders
LLC
combines a partnership and a corporation
Business Cycle
changes in levels of economic activity over time
GDP
value of all finished goods and services produced within a country during a year’s time
GNP
vale of finished goods and services produced by a nation’s citizens during a year’s time
Peak
the highest point of the expansion
Recession
period of economic decline; GDP is low for 2 months or longer
Trough
the lowest point
Depression
an especially severe recession
Demand-pull Inflation
demand becomes greater than supply resulting in shortages
Cost-push Inflation
production cost increases, so product price increases
CPI
the most used tool to measure inflation
Base Period
time period that has been chosen when the prices of goods are set to 100%, currently 1982-1984 (CPI is compared to the base period)
Stagflation
High levels of inflation combined with high unemployment (results in stagnancy of production)
Supply-side Economics
cutting taxes to make more money available for savings, R&D, hiring new employees, etc.
SSE
implemented by Ronald Reagan
1982-1984
What time period was chosen when the prices of goods are set to 100%
Ronald Reagan
Who implemented SSE
Note 
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