| A | B |
|---|
| aggregates | summation of all the individual parts in the economy |
| aggregate demand | total quantity of goods and services in the entire economy that all citizens will demand at any single time |
| aggregate demand curve | a graphed line showing the relationship between the aggregate quantity demanded and the average of all prices as measured by the implicit GDP price deflator |
| aggregate supply | real domestic output of producers based on the rise and fall of the price level |
| aggregate supply curve | a graphed line showing the relationship between the aggregate quantity supplieid and the average of all prices as measured by the implicit GDP price deflator |
| business fluctuations | ups and downs in an economy |
| business cycle | irregular changes in the level of total ouptup measured by GDP |
| peak | period of prosperity in a business cycle in which economic activity is at its highest point |
| boom | period of prosperity in a business cycle in which economic activity is at its highest point |
| contraction | part of the business cycle during which economic activity is slowing down |
| recession | part of the business cycle in which the nations output (real GDP) does not grow for at least 6 months |
| depression | major slow down of economic activity |
| trough | lowest part of the business cycle in which the downward spiral of the economy levels off |
| expansion | part of the business cycle in which economic activity slowly increases |
| recovery | part of the business cycle in which economic activity slowly increases |
