Commonly used economic terms

Defining Economic Terms
Inflation and stagflation are two terms used to describe the change in average prices in a territory in a specific period of time. When economists use the term inflation, they are referring to the increase in average price levels in an economy ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, p.73)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, p.73). Meanwhile, stagflation is used to describe a condition wherein prices are increasing but outputs are decreasing ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, pp.172-173)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, pp.172-173).
The terms recession, depression, expansion and contraction are used to describe economic fluctuations. Recession, contraction and depression, describe decreases in economic activity, the difference between them rely on the severity of decline. Recession is defined as "a decline in economic activity [which] lasts a few months" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publ...