Glossary Category: Macroeconomy - Page 9 - 3auk

deflation

A sustained decrease in the general price level, typically defined as lasting for two consecutive quarters or more.

Inflation refers to a sustained increase in the general price level of goods and services in an economy

Potential growth is the sustainable, long-run increase in an economy’s maximum output capacity, driven by improvements in the

Actual growth is the short-term percentage change in a country’s real GDP, driven by an increase in aggregate

Real GDP refers to the inflation-adjusted measure of the total value of all final goods and services produced

Aggregate supply (AS) refers to the total quantity of goods and services that firms in an economy are

Cyclical unemployment, also referred to as demand-deficient unemployment, arises from insufficient aggregate demand in the economy. This causes

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a

Financial strain: Unemployment results in a sharp decline in income, creating challenges for households in covering essential costs

Aggregate demand (AD) refers to the total level of demand for goods and services in an economy at