| A | B |
|---|
| The total value of all final goods and services produced in a country in one year. | Gross Domestic Product (GDP) |
| The year chosen to compare an item, such as price, to the same item in another year. | base year |
| The GDP divided by the total population of a country. | GDP per capita |
| The movement of an economy from one condisiton to another and back again. | business cycle |
| A phase of the business cycle when most people who want to work are working and businesses produce goods and services in record numbers. | prosperity |
| A period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows for several quarters. | recession |
| A phase marked by high unemployment, weak sales of goods and services, and business failures. | depression |
| A phase of the business cycle in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again. | recovery |
| An increase in the general price level. | inflation |
| A decrease in the general price level. | deflation |
