Economic growth, An increase in a country's real GDP over time, GDP, The total market value of all final goods and services produced in a country in a year, Real GDP, GDP adjusted for inflation, Recession, A fall in GDP for two quarters in a row, Boom, The stage of the cycle when GDP grows fastest and unemployment is low, Inflation, A general and continuing rise in prices, Deflation, A general and continuing fall in the price level, CPI, Measures price changes of a basket of goods and services households buy, Demand-pull inflation, Prices rise because total demand is greater than what the economy can produce, Cost-push inflation, Prices rise because firms' costs, such as wages or oil, go up, Menu costs, The cost for firms of changing their price lists again and again, Shoe leather costs, Time and effort spent searching for the best prices when inflation is high, Structural unemployment, Jobs lost for good because an industry declines or machines replace workers, Seasonal unemployment, No work during part of the year, for example a beach café in winter, Frictional unemployment, Short-term unemployment while moving from one job to another, Cyclical unemployment, Jobs lost because the economy is in a recession, Voluntary unemployment, People choose not to work at the wages on offer, ILO unemployed, No job, looked for work in the last 4 weeks, can start within 2 weeks, Current account, Records exports and imports of goods and services, plus income flows, Current account deficit, The value of imports is greater than the value of exports, Invisible trade, Trade in services, for example tourism or banking, Leakage, Money flowing out of the economy to pay for imports, Visual pollution, Damage to how a place looks, for example litter on the street, Pollution permit, Gives a firm the right to pollute a fixed amount and can be sold, Subsidy, Government money to firms to encourage good activities, such as solar energy

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