Macro- performance Flashcards

1
Q

Short-run economic growth

A

Growth of real output from using idle resources, taking up slack in the economy

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2
Q

Long-run economic growth

A

Increase in the economy’s potential level of real output

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3
Q

SRAS shown

A

Point from inside to on the curve (PE)

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4
Q

LRAS shown

A

Outward shift of the PPF

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5
Q

Gross Domestic Product (nominal)

A

GDP- sum of all goods and services, or level of output produced in an economy per year

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6
Q

RGDP

A

Real GDP is national income calculated after inflation

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7
Q

Full employment (Beveridge)

A

FE- means that less than 3% of the workforce is unemplyed

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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

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