| A | B |
|---|
| interest rates | represent the cost of borrowing money |
| Inflation | an increase in the general level of prices |
| Prosperity | Employment rate and demand for products and services are high |
| Recession | Unemployment rate is increasing and demand for products and services are lowering. |
| Depression | Unemployment rate is high and demand for products and services is lowering. |
| Recovery | Unemployment rate is lowering and demand for products and services is increasing. |
| Individual spending | includes food, clothing, housing, and other spending. |
| Business spending | includes buildings, equipment, and inventory items |
| Government spending | includes paying employees and buying supplies and other goods and services |
| Exports minus imports | includes goods and services that are sold to other countries. |
| Gross Domestic Product (GDP) | the highly used measurement to determine a country’s overall economic output |
