Economics class notes
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April 20 - Real vs Nominal GDP

  • Nominal GDP is based on the prices of goods at the dollar price it was sold for in the year it was produced (watch out for inflation)

  • Real GDP takes the Nominal GDP from multiple years and compares them

Standard of Living

  • Standard of Living is the level of material wealth as measured by the consumption of goods and services

The Business Cycle

Business Cycles are alternating periods of rising and falling real GDP

  1. Expansion
  2. Peak
  3. Contraction
  4. Expansion
  5. Tough
  6. Recession