GDP and Economic Growth Concepts

These flashcards cover key vocabulary and concepts related to GDP, economic growth, and the business cycle.

Real GDP

Nominal GDP adjusted for inflation using the GDP deflator.

GDP Deflator

An index that measures the level of prices of all new, domestically produced final goods and services in an economy.

Base Year

The year used as a reference point for comparison when computing real statistics.

Growth Rate

The measure of the increase or decrease in an economic variable, expressed as a percentage.

Recession

A significant decline in national output/GDP, officially declared by the National Bureau of Economic Research.

Depression

An especially lengthy and deep decline in economic output.

Peak

The highest point of output in the business cycle before a recession starts.

Trough

The lowest point of output in a recession before economic recovery begins.

Business Cycle

The economy's short-term movement in and out of recession.

Exchange Rate

The value or price of one currency in terms of another currency.