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If aggregate expenditures are less than GDP then?
inventories will increase and real GDP will decline.
What is a decline in real GDP combined with a raise in the price level known as?
Stagflation
What is a economic peak?
point in time when real GDP stops expanding and begins to decline
Which phase of a business cycle that leads and economy into recession?
a contrction because a recession is a prolonged contarction and to determine when in recession real GDP starts to fall. Contraction is a period of economic decline marked by falling real GDP
What would be the effects of a decline in GDP?
Stagnation or decline of economic growth .
If aggregate expenditures are less than GDP then?
inventories will increase and real GDP will decline.
What is a decline in real GDP combined with a raise in the price level known as?
Stagflation
What is a economic peak?
point in time when real GDP stops expanding and begins to decline
What are two typical features of a depression?
A decline in real GDP and a high level of unemployment.
Which phase of a business cycle that leads and economy into recession?
a contrction because a recession is a prolonged contarction and to determine when in recession real GDP starts to fall. Contraction is a period of economic decline marked by falling real GDP
What would be the effects of a decline in GDP?
Stagnation or decline of economic growth .
Nominal GDP differs from real GDP because?
Real GDP is adjusted for changes in the price level.
What is it called when GDP figures decline but prices rise?
stagflation
Explain real GDP vs potential GDP?
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
Is a nations standard of living measured by GDP or real GDP?
It is measured by Real GDP, the reason is because you cant just say GDP. GDP consists of nominal and real GDP, nominal GDP does not include prices at different constants in other words it just uses one base price for all the different times, whereas real GDP consists of varying price levels at different times. Real GDP
What Real GDP divided by the total population is?
the real GDP per capita
Why has the nominal GDP increased faster than real GDP in the US over time?
The real GDP is influenced by inflation.
