| A | B |
|---|
| Gross Domestic Product (GDP) | the total dollar value of all final goods and services produced in a country during one year |
| GDP per capita | the output per person, calculated by dividing gross domestic product (GDP) by the total production |
| unemployment rate | the proportion of people in the labor force who are not working |
| productivity | the production output in relation to a unit of input, such as a worker |
| personal income | salaries and wages as well as investment income and government payments to individuals |
| retail sales | the sales of durable and nondurable goods bought by consumers |
| business cycle | a movement of the economy from one condition to another and back again |
| prosperity | the peak of the business cycle, it is a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of gross domestic product (GDP) growth increases |
| recession | the phase of the business cycle in which demand begins to decrease, businesses lower production, unemployment begins to rise, and gross domestic product (GDP) growth slows for two or more quarters of the calendar year |
| depression | the phase of the business cycle that is marked by a prolonged period of high unemployment, weak consumer sales, and business failures |
| recovery | the welcome phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases, and gross domestic product (GDP) begins to rise again |
| inflation | an increase in the general level of prices |
| price index | a number that compares prices in one year with some earlier base year |
| deflation | a decrease in the general level of prices |
| capital project | spending by businesses for items such as land, buildings, equipment and new products |
| stock | ownership in a corporation |
| bond | a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date |
| budget surplus | occurs when a government spends less than it takes in |
| budget deficit | occurs when a government spends more than it takes in |
| national debt | the total amount owed by the federal government |
