| A | B |
|---|
| Demand | the willingness and ability of buyers to purchase a product (a good or a service) |
| Supply | the willingness and ability of producers to offer a good or service for sale |
| Economic Indicators | statistics that show whether an economic system is strengthening, weakening, or remaining stable, help assess the performance of an economy |
| Business cycle | the pattern of short-term ups and downs (or expansions and contractions) in an economy |
| Aggregate output | the total quantity of goods and services produced by an economic system during a given period |
| Standard of living | the total quantity and quality of goods and services that they can purchase with the currency used in their economic system |
| Stabilization Policy | government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices |
| Monetary Policies | policies used by a government to control the size of its money supply |
| Fiscal Policies | policies used by a government regarding how it collects and spends revenue |
| Recession | a period during which aggregate output, as measured by GDP, declines |
| Depression | a prolonged and deep recession |
| Unemployment | the level of joblessness among people actively seeking work in an economic system |
| Balance of Trade | the economic value of all the products that a country exports minus the economic value of its imported products |
| National Debt | the amount of money the government owes its creditors |
| Nominal GDP | gross domestic product (GDP) measured in current dollars or with all components valued at current prices |
| Gross national product (GNP) | refers to the total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
| Inflation | occurs when widespread price increases occur throughout an economic system |
| Floating Exchange Rate | The value of one currency relative to another varies with market conditions |
| Fixed Exchange Rate | Value of currencies remain constant relative to one another |
| Exchange Rate | rate at which the currency of one nation can be exchanged for the currency of another nation |
| Trade Deficit | situation in which a country’s imports exceed its exports, creating a negative balance of trade |
| Trade Surplus | situation in which a country’s exports exceed its imports, creating a positive balance of trade |
