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Economic Growth and Cycles flashcards

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What is meant by “Economic growth” in this lesson?Growth and living standards
Economic growth commonly refers to rising real output over time.
What is meant by “Capital accumulation” in this lesson?Growth and living standards
Capital accumulation increases productive equipment and infrastructure.
What is meant by “Innovation” in this lesson?Growth and living standards
Innovation introduces or applies new products, processes, or organizational methods.
What is meant by “Institutions” in this lesson?Growth and living standards
Institutions are rules and organizations shaping incentives and economic interactions.
What is meant by “Living standards” in this lesson?Growth and living standards
Living standards concern material and broader conditions of life rather than output alone.
What is meant by “Sustainable growth” in this lesson?Growth and living standards
Sustainable growth considers whether gains can persist without unacceptable resource or environmental damage.
What is meant by “Expansion” in this lesson?Business cycles
An expansion is a period of broadly increasing economic activity.
What is meant by “Peak” in this lesson?Business cycles
A peak marks the transition from expansion toward contraction in a dated cycle.
What is meant by “Contraction” in this lesson?Business cycles
A contraction is a broad decline in economic activity over a period.
What is meant by “Trough” in this lesson?Business cycles
A trough marks the transition from contraction toward recovery.
What is meant by “Aggregate demand” in this lesson?Business cycles
Aggregate demand represents planned economy-wide spending in a macroeconomic model.
What is meant by “Economic shock” in this lesson?Business cycles
A shock is an unexpected disturbance affecting economic conditions.
What is meant by “Recession” in this lesson?Recession and recovery
A recession is a significant broad decline in economic activity; dating methods vary by institution.
What is meant by “Demand shortfall” in this lesson?Recession and recovery
A demand shortfall reduces sales and can lead firms to cut production.
What is meant by “Supply disruption” in this lesson?Recession and recovery
A supply disruption reduces productive capacity or raises production costs.
What is meant by “Recovery” in this lesson?Recession and recovery
Recovery is renewed activity after a contraction, with uneven timing across measures.
What is meant by “Policy lag” in this lesson?Recession and recovery
A policy lag is a delay in recognition, implementation, or effect.
What is meant by “Scarring” in this lesson?Recession and recovery
Scarring is persistent damage after a downturn, such as lost skills or investment.