1.
Budget Deficit: when the government spends more money than it collects in taxes
2.
Budget Surplus: a situation in which the government takes in more than it spends
3.
Business Cycle: fluctuations in economic activity, such as employment and production
4.
Deflation: a decrease in the average price of all goods and services
5.
Depression: a long-term economic state characterized by unemployment and low prices and low levels of trade and investment
6.
GDP: Gross Domestic Product- the total market value of all final goods and services produced annually in an economy
7.
Inflation: increased prices for goods and services combined with the reduced value of money
8.
National Debt: the amount of money a national government owes to other governments or its people
9.
Prosperity: an economic state of growth with rising profits and full employment
10.
Recession: An economic slowdown of the economy which results in rising unemployment, increased business failures, declining economic growth and higher personal bankruptcies.
11.
Recovery: the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again
12.
Standard of Living: a measure of quality of life based on the amounts and kinds of goods and services a person can buy