| A | B |
|---|
| inflation | sustained increases in prices of all goods and services |
| gross domestic product | total value of all goods and services produced in an economy |
| intermediate goods | goods used in the production process |
| economic growth | sustained increases in real GDP over time |
| consumption expenditures | purchases of newly produced goods and services by households |
| depriciation | reduction in value of capital goods due to wear and tear |
| private investment expenditures | purchases of newly produced goods and services by firms |
| transfer payments | payments by government that do not correspond to production of goods or services |
| trade deficit | excess of imports over exports |
| trade surplus | excess of exports over imports |
| gross national product | GDP plus net income earned abroad |
| disposable income | income retained after paying taxes |
| depression | severe recession |
| national income | total income earned a nation's residents domestically and abroad in the production of goods and services |
| net exports | exports minus imports |
