Macroeconomics Work Sheet 2 Flashcards
1
Q
Define Recession
A
Occurs when an economy experiences a fall in real national output (Real GDP) for two or more consecutive quarters
2
Q
Identify the 3Ds used to characterise Recessions?
A
Depth, Duration, Determinants were?
3
Q
Potential Output
A
The output that could be produced in the economy if there were a full employment of resources (including labour).
4
Q
Aggregate Demand
A
The Total demand for (final) goods and services produced in an economy in a given time period.
5
Q
Aggregate Demand (Textbook Equation Definition)
A
AD=C+ I + G + (X-M)
The total spending on goods and services produced in an economy.
