Using complete sentences, define, describe, and provide an example of each term in the table within the worksheet.

Gross Domestic Product (GDP): Gross domestic product (GDP) is a measure of the total value of all goods and services produced within a country’s borders in a given year. It is commonly used as an indicator of economic growth, with higher GDP values indicating that more wealth has been created. For example, if the GDP for the U.S. were to rise from $17 trillion to $18 trillion between two years then this would show that there was an increase in production and income during that period.

Inflation: Inflation is the rate at which prices for goods and services rise over time due to changes in supply, demand, or both. It can have far-reaching consequences on spending power as it decreases purchasing power when left unchecked. For instance, if inflation increases by 10% over one year then it would mean that prices across all sectors have gone up by 10%. This means individuals must now spend more money than before just to acquire the same products or services they previously purchased for less money prior to this price increase.