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Unit 5: Crisis and Change

Lesson E: Economic Depression and Political Collapse

Key Terms

Key Term Definition
balance of international trade the excess of visible exports over visible imports
demand the different quantities of a resource, good, or service that will be purchased at various possible prices at a given point in time
depression a period of drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and unemployment
free market a market in which there is no economic intervention and regulation by the state, except to enforce private contracts and the ownership of property
Gross Domestic Product (GDP) the monetary value of all goods and services produced in a given year
interest rate the price that people pay to borrow money or are paid to lend money; this price is determined by the forces of supply and demand and affect the level of economic activity in a country
interventionism any activity undertaken by a central government to affect a country's economy
personal income an individual's total earnings from wages, investment enterprises, and other ventures
populism political discourse that appeals to the general mass of the population, to the "people" as such, regardless of class distinctions and political partisanship
price the amount of money or goods asked for or given in exchange for something else
profit the amount received for a commodity or service in excess of the original cost
reparations money paid for damages
supply the different quantities of a resource, good or service that will be offered for sale at various possible prices during a specific time period
tariff fees or duties imposed by a government on imported or exported goods
taxes a fee charged by the government on a product, income, or activity
unemployment rate the percentage of the workforce looking for work but not finding it
welfare well-being; aid in the form of money or necessities for those in need


Directions: Practice using these terms.


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