9.2 Economic growth and sustainability Flashcards
1
Q
Output gap
A
a gap between actual and potential output
2
Q
Negative output gap
A
a situation where actual output is below potential output
3
Q
Positive output gap
A
a situation where actual output is above potential output
4
Q
Trade cycle
A
fluctuations in economic activity over a period of years
5
Q
Intergenerational equity
A
the responsibility that government has to provide for a more equitable future distribution of income and wealth
6
Q
Sustainable development
A
development that ensures that the needs of the present generation can be met without compromising the well-being of future generations
7
Q
Actual economic growth
A
an increase in real GDP
8
Q
Potential economic growth
A
an increase in the productive capacity of the economy
