| A | B |
|---|
| Real GDP | Uses prices of a single base year in order to eliminate inflated prices and therefore an inflated GDP |
| Recession | Total demand slowing at a faster rate than total supply |
| GDP | Measure of total output |
| Inflation | Increase in the average level of prices |
| Consumer Price Index | Measure of inflation |
| Stagflation | High inflation and high unemployment |
| GDP, CPI, Unemployment | Indicators of inflation |
| Demand-pull inflation | Due to highly employed workforce, demand for products/services pulls the prices up. |
| Spending and Printing | How does Government contribute to inflation? |
| Profit-push inflation | Businesses increase prices to take advantage of inflationary economy. |
| Cost-push inflation | Cost of goods and services increase due to increased costs of raw materials and labor. |
| Buy now, save later | Consumers "feeding the fire" of inflation. |
| Nominal | Based on current year's prices. |
