ECON 105 Study Guide - Midterm Guide: Mail Order, Aggregate Supply, Aggregate Demand

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Barry Cartwright

Document Summary

Potential gdp: the total amount that an economy is capable of producing when all of it"s resources are being fully utilized. Labour productivity: a measure of the amount of output produced per unit (per unit of time) human capital: the accumulated knowledge and skills of human beings business cycle: the expansionary and contradictory phases in the growth of real gdp. This is measured via growth rates (remember that grwoth rates are calculated year by year, not off. Usually represented on a line chart-expansionary phase (upward trending) contractionary phase of a base rate) (downward trending), peaks and troughs. 4 sources of economic growth the quantity and quality of it"s labour resources. Amount of physical capital available (higher capital-labour ratio) the rate of technological change. The amount and quality of it"s natural resources. Economic growth=a right shift in the potential gdp curve. Aggregate supply: the aggregate quantity of goods and services produced by all sellers at various price levels.