| A | B |
|---|
| gross domestic product (GDP) | The monetary amount of all the goods and services produced in the country in a given year. |
| standard of living | The amount of goods and services the average person can buy. |
| inflation | A general rise in the prices of goods and services. |
| deflation | A general decrease in the costs of goods and services. |
| budget deficit | When the government spends more than its collects in taxes. |
| national debt | The total amount of money a government owes. |
| budget surplus | A situation when a government's revenues exceeds its expenditures during one year. |
| business cycle | Repeated rise and fall of economic activity over time. |
| prosperity | The peak of economic activity. |
| recession | A time when economic activity slows down. |
| depression | A period of severe economic decline. |
| recovery | A rise in economic activity after a recession or depression. |
