Unit 32 Flashcards
1
Q
Define actual growth.
A
Actual growth is economic growth as measured by recorded changes in real GDP over time.
2
Q
What is a boom or peak?
A
A boom or peak is a period of time when the economy is growing strongly and is operating above it’s productive potential.
3
Q
What is a demand-side shock?
A
A demand-side shock is a sudden and large impact on aggregate demand
4
Q
What is a depression or slump?
A
With depression a slump is a period of the trade cycle where there is a particularly deep and long fall in output.
5
Q
Define downturn.
A
This is a period of the trade cycle when either economic growth or GDP itself is falling.
