Macro Topic 3 definitions Flashcards
1
Q
GDP
A
The total value of goods and services produced within an economy in a given time.
2
Q
Economic growth
A
when real GDP is rising (output is increasing) so more goods and services are being produced, unemployment is falling, consumer confidence is rising and living standards are rising
3
Q
trend growth in GDP
A
the average rate of growth
4
Q
economic recovery
A
a period of economic growth following a recession (short run economic growth)
5
Q
recession
A
a fall in GDP over two consecutive quarters
6
Q
slump
A
a prolonged period of recession
7
Q
economic boom
A
when an increase in GDP is above trend growth GDP
