Chapter 7 Flashcards
1
Q
Business Cycle
A
Short term fluctuations of real GDP around the long term growth trend
2
Q
Economic Growth
A
refers to the longterm growth trend in real GDP, causes the PPC to shift outwards to the right which enables us to produce bundles that were previously not feasible
3
Q
Production possibility curve “PPC”
A
shows the different bundles from two goods that the economy can produce using all our resources
4
Q
Economic growth rate
A
measures by what % our percapita real GDP changes each year
5
Q
Rule of 70
A
tells us how long it takes a country to double its GDP
