| A | B |
|---|
| gross domestic product | the total dollar value of all final goods and services produced in a country during one year |
| base year | the year chosen to compare an time, such as price, to any other year |
| GDP per capita | the GDP divided by the total population of a country |
| business cycle | the movement of the economy from one condition to another and back again |
| prosperity | a phase of the business cycle when most people who want to work are working and businesses produce goods and services in record numbers |
| recession | a period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year. |
| depression | a phase marked by a prolonged period of high unemployment, weak sales of goods and services, and business failures. |
| recovery | the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again |
| inflation | a sustained increase in the general level of prices |
| deflation | a decrease in the general level of prices |
