businesscycle Flashcards
1
Q
what is a recession
A
two or more consecutive quarters of negative economic growth
2
Q
what is potential trend gdp
A
The sustainable rate of GDP growth caused by improvements in productive capacity overtime.
3
Q
what is negative output gap
A
its when actual gdp is below potential trend gdp
4
Q
economic boom
A
sustained period of strong economic growth or gdp (3%+)
5
Q
economic slow down
A
the rate of economic growth has slowed
6
Q
what is an output gap
A
the difference between actual gdp and its estimated potential level
7
Q
depression
A
when gdp fails by 10% or more
8
Q
recovery
A
when gdp starts to go back up after a prolongd period
9
Q
cyclical
A
occuring in a pattern where one things cause one another in a circular pattern
10
Q
A
