ECON 2010 Chapter : Study Plan 9/10
Document Summary
Real gdp: the value of final goods and services evaluated at base-year prices. Potential real gdp: the level of real gdp attained when all firms are producing at capacity. The congressional budget office is responsible for computing these data, which is currently estimated through october 1, 2022. Recession: period between the high point of economic activity and the following low point. Expansion: period between the low point of economic activity and the following high point. The unemployment rate increases and the inflation rate falls during recession. Recessions were more severe and lasted longer in the first half of the twentieth century and became shorter and milder in the second half because: -the federal government has stabilized the economy by using active fiscal and monetary policies. -the unemployment insurance program and other government transfer programs have aided the economy. -the economy has become more service oriented and less dependent on the production of goods.
