| A | B |
|---|
| GDP | Dollar value of all final goods and services produced in a country within one year. |
| Business cycle | Period of macroeconomic expansion followed by a contraction. |
| Recession | When the GDP falls for two consecutive quarters. |
| Depression | Long term downward trend in the economy characterized by high unemployment and low GDP. |
| Expansion | Period of economic growth in the business cycle. |
| Peak | Height of the business cycle. |
| Contraction | Following a peak when the economy begins to experience falling GDP. |
| Trough | The bottom of the business cycle when the lowest point has been met and GDP stops falling. |
| GNP | Annual income earned by U.S. firms and businesses. |
| Nominal GDP | GDP measured in current prices. |
| Real GDP | GDP measured in constant or unchanging prices. |
| intermediate goods | Goods used in the production of final goods. |
| final goods | Products sold to consumers |
| National Income Accounting | A system used to collect statistics and predict economic trends. |
| durable goods | Goods that last for a long time. |
| price level | Average of all prices in the economy. |
| Stagflation | Decline in real GDP along with a rise in consumer prices. |
| Capital deepening | Increasing the amount of capital per worker. |
| Savings | Income not used for consumption. |
| Depreciation | Loss of value of capital equipment. |
