| A | B |
|---|
| gross domestic product (GDP) | The total value of the goods and services produced in a country in one year |
| standard of living | The amount of goods and services the people of a country can buy |
| inflation | A general increase in the cost of goods and services |
| deflation | A general decrease in the cost of goods and services |
| budget deficit | When the government spends more on programs than it collects in taxes, or expenses exceed income |
| national debt | The total amount of money owed by the federal government |
| budget surplus | When the government collects more in taxes than it spends on programs, or income exceeds expenses |
| business cycle | The rise and fall of economic activity over time |
| prosperity | The peak of economic activity |
| recession | A decline in economic activity. |
| depression | A deep, long-term decline in economic activity. |
| recovery | A rise in business activity after a recession or depression. |
