IB1 Chapter 23 The business cycle

business cycle

refers to the fluctuations upswing and downswing occurring due to the various economic activities including sales income employment and output

downturn

a decline in economic and business activity

upturn

an increase in economic activity

expectations

beliefs about what will happen in the future

consumption

purchasing and using goods and services

balance of payments

the difference between the funds a country receives and those it pays for all international transactions

gross domestic product (GDP)

the total market value of all goods and services provided in a country during a given period

demand

the willingness and ability of consumers to purchase goods and services

supply

the willingness and ability of businesses to offer goods or services for sale

save

to put money aside to spend in the future

equilibrium

a state of balance for example when supply is the same as demand

deficit

an amount of money that is smaller than is needed e.g. when spending exceeds revenues

surplus

an excess a quantity that is larger than is needed

fiscal policy

government actions concerning taxation and public expenditure

monetary policy

government actions concerning the rate of growth of the money in circulation

money supply

the total amount of money available in an economy at a particular time

keynesianism

the economic theory that government monetary and fiscal policy should stimulate business activity and increase employment in a recession

corporate social responsibility (CSR)

a business approach in which a business is concerned for the welfare of society rather than just generating profit