Macro Definitions Flashcards
1
Q
GDP
A
Gross domestic product- the value of all goods and services produced in an economy in a time period
2
Q
Economic growth
A
The percentage change in GDP over a time
3
Q
Nominal economic growth
A
The percentage change in GDP over time (not adjusted for inflation)
% change= (new-old)/old x100
4
Q
Real economic growth
A
The percentage change in GDP over time adjusted for inflation
=nominal growth- rate of inflation
5
Q
Recession
A
Two consecutive quarters of negative growth
6
Q
Boom
A
Growth above 2.4%
