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

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

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