| A | B |
|---|
| business cycles | are fluctuations or changes in a market systems' economic activity |
| expansion | period of economic growth |
| peak | high point where the economy is at its strongest |
| contraction | business slowdown |
| recession | a decline in real GDP for two or more quarters |
| depression | is a prolonged and severe recession |
| trough | when demand, production and employment reach their lowest levels |
| leading indicators | anticipate the direction in which the economy is headed |
| coincident indicators | provide information about the current status of the economy. They tell economists about upturns/downturns |
| lagging indicators | help economists predict the duration of economic upturns or downturns |
| real GDP per capita | is an increase in the real dollar value of all final goods and services that are produced per person |
| labor productivity | is a measure of how much each worker produces in a given period of time, usually one hour |
| productivity growth | an increase in the output of each worker per hour of work |
| capital-to-labor ratio | the amount of capital stock available per worker |
| capital deepening | an increase in the amount of capital goods available per worker-results |
