| A | B |
|---|
| prosperity | A peak of economic activity. |
| recession | Economic activity slows down. |
| Depression | A deep recession that affects the entire economy and lasts for several years. |
| recovery | A rise in business activity after a recession or depression. |
| Business Cycle | The rise and fall of economic activity over time. |
| The Federal Reserve | The government agency that guides the economy by regulating the amount of money in circulation, controlling interest rates, and controlling the amount of money loaned. |
| (GDP) Gross Domestic Product | The total value of the goods and services produced in a country in a given year. |
| standard of living | The level of material comfort as measured by the goods and services that are available. |
| Inflation | A general increase in the price of goods and services. |
| deflation | A general decrease in the price of goods and services. |
| budget deficit | The result of a government spending more on programs than it collects in taxes in a one year time period. |
| budget surplus | When a governments revenue exceeds its expenditures during a one year period. |
| national debt | The total amount of money a government owes. |
| unemployment rate | Measures the number of people who are able and willing to work but cannot find work during a given period. |
