Macro- performance Flashcards
Short-run economic growth
Growth of real output from using idle resources, taking up slack in the economy
Long-run economic growth
Increase in the economy’s potential level of real output
SRAS shown
Point from inside to on the curve (PE)
LRAS shown
Outward shift of the PPF
Gross Domestic Product (nominal)
GDP- sum of all goods and services, or level of output produced in an economy per year
RGDP
Real GDP is national income calculated after inflation
Full employment (Beveridge)
FE- means that less than 3% of the workforce is unemplyed
Full employment (Free market)
Level of emplyment at the market clearing, real wage rate
-When the number of employees wish to hire equals the number who wished to be employed