Gross Domestic Product and Economic Growth Power Point Notes

More documents

Recommendations

Info

Phases of Business Cycles • Expansion - economic growth measured by by rise in GDP • economic growth - long term increase • peak - the height of economic growth • Contraction - economic decline marked by a fall in GDP • trough - the lowest point • recession - prolonged economic contraction • depression - recession that is long and severe • Stagflation - decline in real GDP - combined with rise in the price level
What Keeps a Business Going • Business Investments – when economy is expanding, business expect sales and profits to keep rising, therefore businesses invest heavily; however sometimes too much expansion • Interest Rates and Credit – credit for big purchases, cars and homes, the cost is the interest rate financial institutions charge • Consumer Expectations – consumer spending is determined by consumer expectations. If consumers expect economy to contract, they reduce spending and vice a versa • External Shocks – disruptions in oil, wars, droughts and hurricanes
Page 1 and 2: Chapter 12 Gross Domestic Product a
Page 3 and 4: 1. Gross Domestic Product • Dolla
Page 5 and 6: Expenditure Approach • Suppose an
Page 7: Limitations of GDP • Non-market a
Page 13 and 14: Measurements of the Macro economy
Page 15: 2. Business Cycles • A periods of
Page 19 and 20: Business Cycles throughout history
Page 21 and 22: Measuring Economic Growth • Real
Page 23 and 24: Technological Progress • An incre

Gross Domestic Product and Economic Growth Power Point Notes

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?