FE T9 - Economic Growth

Vocabulary-style flashcards covering key definitions and economic indicators from Topic 09 (Fundamentals of Economics).

Output growth

An increase in the aggregate output, which is the total quantity of goods and services produced, in an economy throughout a given period, usually $1$ year.

Real GDP

Gross Domestic Product measured in fixed prices, meaning it is adjusted for price changes through years.

Economic growth rate

The annual percentage change of real GDP.

Real GDP per capita

Real GDP divided by the population; the contribution of real GDP growth to changes in the standard of living depends on the growth rate of this variable.

Rule of 70

The number of years it takes for the level of any variable to double, calculated as approximately $70$ divided by the annual percentage growth rate of the variable.

Expansion

A short-term fluctuation in economic performance characterized by an increase in aggregate output.

Recession

An economic downturn or declines in aggregate output for at least $2$ consecutive quarters.

Business Cycle

A repeating period of expansion and recession within an economy.

Labor productivity

The amount of output produced by an average laborer in an hour, which can also be expressed in terms of output per labor.

Human Capital

The accumulated skill and knowledge that workers acquire through education, training, and experience.