Growth An increase in the value of goods and services produced by an economy.

. Gross Domestic Product- The total market value of all final goods and services produces annually within the boundaries of the United States, whether by U.S. or foreign supplied resources. Unemployment- the failure of an economy to fully employ its labor force., Inflation- A rise in the general level of prices in an economy. Stagflation- Inflation accompanied by stagnation in the rae of growth output and an increase in employment in the economy; simultaneous increases in the price level and the unemployment rate/ Recession- a period of declining real GDP, accompanied by lower real income and higher unemployment Depression- A sustained economic recession of notable magnitude. Stock Market- An exchange system for ownership shares in a corporation. Interest Rates- the annual rate at which interest is paid; a percentage of the borrowed amount. Weak v. Strong Dollar The strength of the dollar is determined by its relative fluctuations against other currencies. Exchange Rates the rate at which one nations currency can be exchanged for another Fiscal Policy- Changes in government spending and tax collections designed to achieve full employment and noninflation domestic output Taxes- Involuntary payments to a government by a household or firm for which the household or firm receives no good or service directly in return Government spending/budget- The expenditures of the government in a given fiscal year. Federal Reserve Bank The 12 banks chartered by the U.S. government to control the money supply and perform other functions. Ben Bernanke- The chairman of the Federal Reserve. Monetary Policy- A central banks changing of the money supply to influence interest rates and assist the economy in achieving price stability, full employment, and economic growth.

Globalization- The growing inter-accessibility and interdependence of markets across national borders. Trade Agreements/NAFTA- Free trade agreements lower the barriers of trade between nations. NAFTA, the North American Free Trade Agreement, is a free trade agreement between the United States, Canada, and Mexico., Capitalism- An economic system In which property resources are privately owned and markets and prices are used to direct and coordinate economic activities. Socialism/command economy- A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; command economy. Competition/free market- A market in which property rights are voluntarily exchanged at a price arranges completely by the mutual consent of sellers and buyers. Monopoly- A market structure in which the number of sellers is so small that each seller is able to influence the total supply and the price of the good or service. Oligopoly- A market structure in which a few firms se;; either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependency, and in which there is typically nonprice competition.