| A | B |
|---|
| Gross Domestic Product | the highly used measurement to determine a country’s overall economic output. GDP is a country’s total dollar value of all final goods and services produced in one year. |
| per capita | per person |
| unemployment rate | percentage of the people of the labor force that are unemployed. |
| productivity | The quantity of a good that an average worker can produce, usually measured in hours. |
| stock market | Market where shares of ownership in corporations are traded |
| bond market | market where loans for businesses and government are bought and sold. |
| budget deficit | Occurs when actual spending exceeds planned spending or actual income |
| prosperity | employment rate and demand for products and services are high |
| recession | unemployment is increasing and demand for products is decreasing |
| recovery | unemployment rate declines and demand for products and services increases |
| depression | unemployment is high and demand for goods and services are low. Businesses are failing |
| business cycle | phases of economy |
| Consumer price index | measurement of assortment of consumer goods measured by the government on a monthly basis. |
| inflation | increase in prices of goods and services is greater than the rise in income |
| deflation | decrease in prices of goods and services is greater than the decrease in income |
| prime rate | the interest rate that a lender will charge their best customer - usually a bank |
| discount rate | the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System |
