| A | B |
|---|
| Supply | Amount of goods producers are willing and able to produce and sell at a given price during a certain period of time. |
| Demand | Consumer's willingness and ability to buy products at a given price during a certain period of time. |
| Law of supply | With all other factors being equal, as the price of a product increases, the quantity supplied will increase, and as the price of a product decreases, the quantity supplied will decrease. |
| Law of demand | With all other factors being equal, as the price of a product increases, consumer demand for the product decreases, and as the price of a product decreases, consumer demand for the product increases. |
| Shortage | When demand exceeds supply, also referred to as scarcity. |
| Equilibrium | Occurs when supply and demand are equal. |
| Elasticity | Degree to which demand for a product is affected by its price. |
| Elastic demand | Refers to how changes in the price of a product result in a change on the demand for that product. |
| Inelastic demand | Refers to how changes in the price of a product have very little affect on the demand for that product. |
| labor productivity | The amount produced per worker measured during a specific time period. |
| Gross Domestic Product | Measure of the goods and services produced in a country. |
| Gross National Product | The sum of the dollar value for products produced by a country. |
| Standard of Living | The amount of goods and services that a nation's people have. |
| Inflation Rate | The rate at which prices are rising. |
| Unemployment Rate | The number of people who are willing and able to work but cannot find a job. Can be determined by dividing the number of unemployed workers by the total number of people who are able and willing to work (including both employed and unemployed). |
| Business Cycle | The movement of an economy through four recurring phases: expansion, recession, depression, and recovery. May also be called the economic cycle. |
