Measuring Economic Performance 2

In a recession, GDP falls and

a decrease in the price level or average level of prices

a way to determine time required for any variable to double

The business cycle is caused by

an increase from one period to the next in per capita real GDP

a slowdown in the economy marked by real GDP falling for two consecutive quarters

an increase in real GDP from one period to the next

an increase in the price level that originates on the demand side of the economy

During a recession, consumer spending

Deflation can lead to

Part of the business cycle when real GDP has reached its lowest point before a recovery

The Business cycle typically follows

Inflation generally

an increase in the price level that originates on the supply side of the economy

Part of a business cycle that occurs when real GDP declines following its peak

the knowledge and skill that people use in the production of goods and services

Part of a business cycle when real GDP continues to go up past a previous peak

recurrent swings (up and down) in real GDP

When there is a sharp decline in real GDP for a long period of time it is called

An increase in the money supply is likely to cause

An economy can increase production if

Part of a business cycle that occurs when real GDP is at its highest level before a contraction

Countries with few natural resources

an increase in the price level, or average level of prices

to try to avoid or lessen a loss by taking some counter balancing action