Macro Midterm – Flashcards
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The two topics of primary concern in macroeconomics are...
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Short-run fluctuations in output and employment, and long-run economic growth
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The business cycle depicts:
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Short-run fluctuations in output and employment
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The term "recession" describes a situation where:
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Output and living standards decline
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What is most closely related to recessions?
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Negative growth in output
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Advanced economies:
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Experience positive growth trend over the short run but experience significant variability in the short run
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Real GDP measures the:
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Value of final goods and services produced within the borders of a country, adjusted for price changes
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If the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real GDP?
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Nominal GDP would rise, but real GDP would be unchanged
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why are high rates of unemployment of concern to economists?
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there is lost output that could have been produced if the unemployed had been working.
