RSM100Y1 Chapter Notes - Chapter 2: Gross National Product, Purchasing Power Parity, Stabilization Policy
Document Summary
Business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy. Recession: period during which aggregate output, as measured by real gdp, declines. Aggregate output: total quantity of goods and services produced by an economic system during a given period. Standard of living: total quantity and quality of goods and services that a country"s citizens can purchase with the currency used in their economic system. Gross domestic product (gdp): total value of all goods and services produced within a given period by a national economy through domestic factors of production. Gross national product (gnp): total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located. (cid:708) (cid:709) Real gdp: gdp calculated to account for changes in currency values and prices. Nominal gdp: gdp measured in current dollars or with all components valued at current prices.
