Flashcards in Macro - Business Cycles Deck (2):
When aggregate demand is measured over time; fluctuations in aggregate GDP (real)
Expansionary period, peak, recessionary, trough (low point), and then the cycle begins anew
Recession - 2 or more quarters of negative change in real GDP; downturn in real GDP of 10% or less.
Extreme recession = Depression; real GDP decline exceeding 10%; 2 or more years