Th2.5: Actual Growth Rates and Long-term Trends Flashcards
1
Q
What is the long run trend of rate growth?
A
the average sustainable rate of economic growth over a period of time
2
Q
What is actual growth?
A
the actual change (i.e the change in real GDP) over time and its changes are what make up the business cycle
3
Q
What is the difference between the two?
A
an output gap
