MGTA01H3 Chapter Notes - Chapter 2: Sneakers, Purchasing Power Parity, Deflation
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MGTA01H3 Full Course Notes
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Business cycle: pattern of short- term ups and downs in an economy; has four phases: peak, recession, trough, and recovery (page 23) Recession is a period during which aggregate output (measured by real gdp) declines. If lasts for a prolonged period, it is called a depression. Aggregate output: total quantity of goods and services produced by an economic system during a given period (main measure of growth) An increase in aggregate output is growth (economic growth) When output grows more quickly than population, output per capita (quantity of goods and services per person) goes up and the system provides relatively more that people want. Gross domestic product (gdp): value of all goods and services produced in a country in one year. The larger the gdp: more workers, using more resources, are producing more things of value. Big/crude; it is one big crude number/ measure. A really big crude simple number that tells us how many stuff got made in canada.
