CH1MEMO - Economics 3307 Main Points of Mankiw, Chapter 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 3307 Main Points of Mankiw, Chapter 1 1. Real Gross Domestic Product (Real GDP) is the primary measure of the total quantity of goods and services produced in an economy. Chapter 2 describes how Real GDP is calculated; for now we'll just assume that it is a reasonable measure. - Real GDP per person grows over time in industrialized countries. It is now more than 6 times as high in the US as it was in 1900. The term economic growth generally refers to growth in Real GDP. - This growth is not steady. When there is a mild decrease in Real GDP, the economy is said to be in a recession . When the decrease in Real GDP is severe, the economy is said to be in a depression . The ups and downs of the economy around the upward trend in Real GDP are referred to as the business cycle . When Real GDP is rising, the economy is in expansion . A very strong expansion is sometimes called a boom . - Real GDP grew by 1.8% between the second quarter of 2006 and the second quarter of 2007. 2.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

CH1MEMO - Economics 3307 Main Points of Mankiw, Chapter 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online