Economic Growth and the Economic Cycle (AQA A-Level Economics): Flashcards

% annual change in real GDP

Movement TO the PPF (using existing resources more fully)

Outward SHIFT of PPF (expanding productive capacity)

$AD = C + I + G + (X - M)$

Rate economy can grow sustainably without causing inflation

Upswing & downswing in activity over 4-12 years

Real output falling for 6+ months (2 consecutive quarters)

Actual output > trend output (economy overheating)

Actual output < trend output (spare capacity in economy)

Recovery, boom, recession, trough