| A | B |
|---|
| Circular Flow of Economic Activity | The circle of money flowing through the economy, total income is spent, which allows the sale of goods and services, which in turn allows the payment of wages and salaries |
| trough | the lowest point, in an economic cycle |
| business cycle | Recurring, fairly predictable, general pattern of periodic fluctuations (as measured by gross national product) |
| Factor Market | a place where inputs or resources, especially labor or capital, are bought and sold |
| Product Market | a market that is used to exchange finished goods and services and that contributes each year to the gross domestic product |
| Businesses (Firms) | A commercial enterprise or establishment/The name or designation under which a company transacts business |
| Labor | the human effort directed toward producing goods & services |
| Capital | goods used to make other goods |
| Household | A domestic unit consisting of the members of a family who live together along with nonrelatives such as servants |
| Interest | payments made for the use of borrowed money |
| Economic Interdependence | the relationship between businesses whose economic decisions effect each other |
| Expansion | when the real GDP is growing – real GDP has gone up for 6 straight months |
| Contraction (Recession) | a declining economy when the real GDP is going down – when the real GDP goes down for 6 straight months |
| Peaks | period of prosperity in a business cycle in which economic activity is at its highest - GDP is at its highest level |
| Depression | a deep recession with high unemployment & low factory output |
| Gross Domestic Product (GDP) | dollar value of all final goods and services produced in a country for a year |
| Consumer Price Index (CPI) | measure of the change in price over time of a specific group of goods or services |
| Per Capita GDP | GDP per person |
| Standard of Living | material well being of an individual group or nation measured by how well their necessities & luxuries are being satisfied |
