| A | B |
|---|
| Gross Domestic Product (GDP) | The total value of the goods and services produced in a country in a given year. |
| standard of living | is the amount of goods and services the average citizen can buy. |
| inflation | is a general increase in the cost of goods and services. |
| deflation | is a general decrease in the cost of goods and services. |
| budget deficit | When the government spends more on programs than it collects in taxes, the difference in the amount. |
| National Debt | The total amount of money a government owes. |
| Budget surplus | A situation when a government's revenue exceeds its expenditures during one year. |
| Business Cycle | the rise and fall of economic activity over a period of time . |
| prosperity | The peak of economic activity. Unemployment is low, production of goods and services is high, and new businesses open. |
| recession | Economic activity slows down. There is a general drop in productivity and the GDP declines. |
| depression | High unemployment, low productivity, and excess capacity in manufacturing plants. A period of severe economic decline. |
| recovery | The rise in business activity after a recession or depression. Production starts to increase and people are starting to go back to work and have money to spend again |
| economic indicators | statistics that measure the performance of the economy. |
| shrinkflation | decreasing product quantitiy/size while maintaining or increasing the price. |
| rate of inflation | the percentage change in the price of a basket of goods and services over a period of time, usually a year. As of July 2024, the inflation rate in the United States was 2.9%. |
| unemployment rate | measures the number of people who are able to work but don't have a job during a given period of time. A reasonable unemployment rate is generally considered to be between 3% and 5%. |
| skimpflation | Is when the quality drops but the price stays exactly the same. It is like pay for VIP and getting general admission with no seat cushions. |
