GDP

Aggregate demand

Economic growth

Recession

savings

taxes

borrowing

imports

GNP

GDP

real GDP

CPI

NNP - depreciation

GDP - inflation

GDP + net national income from abroad

GDP - net national income from aborad

peak

recovery

pre-peak

contraction

The long run potential GDP shifts outward

The production possibilities curve moves inward

actual GDP is greater than potential GDP

actual GDP is less than potential GDP

The wealth effect

The inflation rate effect

The interest rate effect

The international trade effect

C + I + G - (X - M)

C + I + G - (X + M)

C + I + G + (X + M)

C + I + G + (X - M)

Changes in interest rates

Changes in the level of income taxes

Technological change

Changes in foreign income levels

wage rates

the cost of raw materials

changes in business taxes

supply shocks (e.g., bad weather)

no exception - all of the above would shift the short run aggregate supply

it can find more resources

it can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed

it can figure out how to produce more efficiently

it can use a different measure to account for production

real GDP is low, price level is constant, and unemployment is high

real GDP is high but falling, price level is falling, and unemployment is rising

real GDP is rising, price level is rising, and unemployment is falling

real GDP is at its peak, price level consistently rises, and unemployment is low