term1 Definition1term2 Definition2term3 Definition3
Please sign in to your Google account to access your documents:
Actual growth
Economic growth as measured by recorded changes in real GDP over time.
Boom or peak
Period of time when the economy is growing strongly and is operating above its productive potential.
Demand-side shock
A sudden and large impact on aggregate demand.
Depression or slump
A period of the trade cycle when there is a particularly deep and long fall in output.
Downturn
A period of the trade cycle when either economic growth or GDP itself is falling.
Economic growth
A rise in output in an economy which can be either actual or potential growth.
Economic recovery
The movement back from where the economy is operating below its productive potential to a point where it is at its productive potential.
Export-led growth
A rise in aggregate demand caused by a rise in exports.
Hysteresis
The process whereby a variable does not return to its former value when changed. In terms of the trade cycle, it is used to describe the phenomenon of an economy failing to return to its former long term trend rate of growth after a severe recession.
Output gap
The difference between the actual level of GDP and the productive potential of the economy. There is a positive output gap when actual GDP is above the productive potential of the economy and it is in boom. There is a negative output gap when actual GDP is below the productive potential of the economy.
Need help typing ? See our FAQ (opens in new window)
Please sign in to create this set. We'll bring you back here when you are done.
Discard Changes Sign in
Please sign in to add to folders.
Sign in
Don't have an account? Sign Up »
You have created 2 folders. Please upgrade to Cram Premium to create hundreds of folders!