chapter 6 notes - ECON 201 Chapter 6 Notes Business cycle:...

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ECON 201 Chapter 6 Notes Business cycle: alternating periods of economic growth and contraction, which can be measured by changes in real GDP 1. Peak: the phase of the business cycle in which real GDP reaches its maximum after rising during a recovery 2. Recession: a downturn in the business cycle during which real GDP declines and the unemployment rate rises. Also called a contraction 3. Trough: the phase of the business cycle in which real GDP reaches its minimum after falling during a recession 4. Recovery: an upturn in the business cycle during which real GDP rises. Also called an expansion. Economic growth: an expansion in national output measured by the annual percentage increase in a nation’s real GDP Leading indicators: Variables that change before real GDP changes 1. Average workweek 2. Unemployment claims 3. New consumer goods orders 4. Delayed deliveries 5. New orders for plant and equipment 6. New building permits 7. Stock prices 8. Money supply 9. Interest rate 10. Consumer expectations
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chapter 6 notes - ECON 201 Chapter 6 Notes Business cycle:...

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