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inflation
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an increase in the price level, or average level of prices
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demand-side inflation
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an increase in the price level that originates on the demand side of the economy
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supply-side inflation
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an increase in the price level that originates on the supply side of the economy
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velocity
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the average number of times a dollar is spent to buy final goods and services in a year
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simple quantity theory of money
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a theory that predicts that changes in the prices level will be strictly proportional to changes in the money supply
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hedge
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to try to avoid or lessen a loss by taking some counterbalancing action
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deflation
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a decrease in the price level, or average level of prices
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business cycle
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recurrent swings in real GDP
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recession
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a slowdown in the economy marked by real GDP failing for two consecutive quarters
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absolute real economic growth
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an increase in real GDP from one period to the next
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per capita real economic growth
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an increase from one period to the next in per capita real GDP. Real GDP/population
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human capital
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the knowledge and skill that people use in the production of goods and services
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