A phenomenon whereby GDP fluctuates around its underlying trend, following a regular pattern

The difference between actual real GDP and potential real GDP

Occurs when GDP falls for two or more consecutive quarters

A measure of the efficiency of a factor of production

A measure of output per worker or output per hour worked

A measure of output per unit of capital

The average productivity of all factors, measured as the total output divided by the total amounts of inputs used

Expenditure undertaken by firms to add to the capital stock

The fall in value of physical capital equipment over time as it is subject to wear and tear

Gross investment minus depreciation

The stock of skills and expertise that contribute to a worker's productivity; it can be increased through education and training

A strategy for achieving rapid economic growth through the promotion of export activity

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Commission, 1987)

Inflation initiated by an increase in the costs faced by firms, arising on the supply side.

Inflation initiated by an increase in aggregate demand

The quantity of money in the economy

An empirical relationship suggesting that there is a trade-off between unemployment and inflation

A situation describing an economy in which both unemployment and inflation are high at the same time