Macro- performance Flashcards
1
Q
Short-run economic growth
A
Growth of real output from using idle resources, taking up slack in the economy
2
Q
Long-run economic growth
A
Increase in the economy’s potential level of real output
3
Q
SRAS shown
A
Point from inside to on the curve (PE)
4
Q
LRAS shown
A
Outward shift of the PPF
5
Q
Gross Domestic Product (nominal)
A
GDP- sum of all goods and services, or level of output produced in an economy per year
6
Q
RGDP
A
Real GDP is national income calculated after inflation
7
Q
Full employment (Beveridge)
A
FE- means that less than 3% of the workforce is unemplyed
8
Q
Full employment (Free market)
A
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
