The economic cycle Flashcards
1
Q
What is the economic cycle?
A
It represents economic growth over time
2
Q
What are the four stages of the economic cycle?
A
Recovery
Recession
Boom
Slump
3
Q
What are the characteristics of a boom?
A
High growth Positive output gap High productivity Low unemployment High consumer and firm confidence High inflation
4
Q
What are the characteristics of a recession?
A
Low growth Negative output gap Low productivity High unemployment Low consumer and firm confidence Low inflation - firms want to incentivize workers to buy
5
Q
What is recession?
A
Two consecutive quarters of negative economic growth
