| A | B |
|---|
| Prosperity | Highest point of business cycle |
| Recession | Economy starts to slow down. The unemployement rate begins to rise. |
| Depression | Lowest point of business cycle. Many people are not working, poverty exists, many businesses are closing. |
| Recovery | Phase of the business cycle when the economy begins to improve and the unemployment rate goes down. |
| Economic Indicators | Data about the economy which help determine what phase the economy is experiencing at a given time. |
| Gross Domestic Product | The total dollar value of all goods and services that a country produces in one year. |
| Inflation | Rise in prices of goods is greater than the rise in income. |
| Unemployment rate | Indicator which shows what percentage of economy is not working. Individuals in the labor force that are not working, but are willing and able to work. |
| Consumer Price Index | Changes in the price of goods and services bought by consumers over a period of time. May be measured from year to year or measured from month to month. |
| Productivity | The numer of items produced per worker.Output in relation to input by a worker. Can be improved by better training of workers, better access to technology and good management. |
| Standard of Living | Measure of how well people in a country live. |
| GDP Per Capita | The output per person of goods produced in a country. (GDP / Population) |
| Personal Income | Any money coming in from wages, salaries, gifts, investments or government payments. |
| Retail Sales | Sales of durable and nondurable goods and services purchased by consumers such as autos, furniture or groceries. |
| Capital Projects | Long-term business projects that require a large outlay of money and resources such as a building or road. |
| Stock | Investment in a company that represents part ownership of the company.Companies sell these to raise needed capital(money) to expand business. |
| Bond | Investment that represents a short or long term loan to a company or government. |
| Business Cycle | The movement of an economy from one condition to another and back again. |
| Deflation | A general decrease in the price of goods and services. |
| Consumer spending | Money used by individuals to purchase personal items. |
| Exports | Fpr example: Items made in the U.S. but are sold to other countries |
| Corporate bond rate | Costs charged to large businesses when they are given a loan by individuals or the government. |
