2.5 Flashcards
1
Q
Boom
A
A period when the rate of growth of real GDP is fast and higher than the long-term trend
2
Q
Business cycle
A
Short-run fluctuations of national output (real GDP) around its long-term trend
3
Q
National income
A
Everything produced, earned and spent in a country
4
Q
Slowdown
A
A weakening of the rate of growth, real GDP is still rising but increasing at a slower rate
5
Q
Recession
A
A period of at least six months when an economy suffers a fall in output. Or a broadly-based contraction in output, employment, investment and confidence.
6
Q
Recovery
A
A phase of the cycle, after a recession, during which real GDP starts to increase and unemployment begins to fall
7
Q
Depression
A
A prolonged downturn in the economy and where a nation’s GDP falls by at least 10 percent.
