6.1 Macro

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The objectives og the government economic policy
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Fiscal policy The government using government spending to achieve the governments policy.
Recession A fall in real GDP for 6 months or more.
Nominal GDP GDP measured at the current market prices, without removing the effects of inflation.
Gross domestic product (GDP) The sum of all goods and services, or level of output, produced in the economy over a period of time, e.g. one year.
Real GDP A measure of all the goods and services produced in an economy, adjustment for price changes or inflation.
Macroeconomics Involves the study of the whole economy at the aggregate level.
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