| A | B |
|---|
| Business Cycle | the repeated rise and fall of economic activity over time |
| Recession (contraction) | a period of severe economic decline |
| Depression | a very severe recession that lasts for several years |
| Recovery (expansion) | a period of economic growth or expansion following a recession or depression |
| Prosperity | A peak of economic activity. |
| Gross Domestic Product | the dollar value of all final goods and services produced in the nation in a single year |
| Standard of Living | another measure of how well the people in an economic system live |
| Inflation | a prolonged rise in level of prices for goods and services |
| Deflation | A general decrease in the cost of goods and services. |
| Budget Deficit | When the government spends more on programs than it collects in taxes. |
| National Debt | The total amount of money a government owes. |
| Budget Surplus | When a governmnet's revenue exceeds its expenditures during a one year period. |
| Unemployement | all persons over 16 able to work who are actively seeking employment and cannot find any |
| Interest Rates | the cost of using another persons money |
| Discount rate | The cost banks pay for borrowing money from the Federal Reserve |
| Prime Rate | the "best" interest rates that banks provide for their best business customers |
| GDP per capita | the gross domestic product divided by the population of a country |
| Productivity | the production output in relation on a unit of input |
| Personal Income | salaries and wages as well as investment and government payments to individuals |
| Retail Sales | the sales of durable and non-durable goods bought by consumers |
| Certificate of Deposit | they are for set period of time that earn a set interest rate (more than a regular saving account) |
| Capital Project | involve spending by businesses for items such as land, buildings and equipment |
| Stock | represents ownership in a corporation |
| Bond | represents debt for an organization |
| Surplus | revenue is greater than expenses |
| deficit | expenses are greater than revenue |
