| A | B |
|---|
| GCP increases period to period | economic growth |
| GDP decreases period to period | recession |
| Growth rate of variable | Percentage change in variable |
| Amount of output produced per worker | Labor productivity |
| Output moves from trough to peak | Expansion |
| A very severe recession | Depression |
| Full employment | Structural unemployment plus frictional unemployment |
| Continuous rise in price level | Inflation |
| Durable goods | Example: refrigerator |
| Personal disposable income | Amount of income households keep after paying taxes |
| Study of economy at full employment | Classical economics |
| Economy without international trade | Closed economy |
| Compares GDP across nations | GDP per capita |
| Increase in stock of capital per worker | Capital deepening |
| Result of increase in stock of capital | Higher GDP and higher wages |
| Technological progress | Producing more output without using more inputs |
