economic growth definitions Flashcards
1
Q
output gap
A
difference between actual level of DP and productive potential of the economy
+ output when GDP above prod potential of economy
2
Q
+ output gap
A
+ output when GDP above prod potential of economy
3
Q
- output gap
A
- output gap when GDP below prod potential of economy
4
Q
recession
A
two consecutive quarters of negative economic growth
5
Q
Econ growth
A
increase in real GDP over a time period
6
Q
actual growth
A
Econ growth as measured by recorded changes in real GDP
7
Q
boom/peak
A
period ofttimes economy grows strongly and is operating above its productive potential
8
Q
demand side shock
A
sudden and large impact on aggregate demand
9
Q
downturn
A
period of trade cycle when Econ growth or gap is falling
10
Q
export led growth
A
rise in AD caused by rise in exports
11
Q
spare capacity
A
when lras is greater than ad so neg output gap
