ECO 304L Chapter Notes - Chapter Unit 3: Ch 9-12, 16: Longrun, Deflation, Government Budget Balance
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7 Oct 2017
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Macro issues: fluctuations in aggregate output: the business cycle, one often hears terms like recession and recovery in reference to the state of the economy. What do they mean: for now, we will define output as the measure of total production of a country for a fixed period of time (but be ready to go into some detail about the definition of output). The most common measure of output is gross domestic product, usually abbreviated as. Gdp: the business cycle refers to systematic patterns in the economy"s total output over time. If you graph this pattern it looks like a wave: negative slopes indicate a recession; positive slopes indicate expansion. G time: expansions typically last much longer than recessions, which creates a positive trend of economic growth over time. Here"s what the actual path of the u. s. economy looks like since 1980: the recessions are marked with gray bars.