Macroeconomics: The Big Picture
Read this chapter and attempt the "Try It" exercises. Also, complete the concept problems and the numerical problems at the end of the chapter. In the first section of this chapter, you will read about the definition of Gross Domestic Product and some of the issues around measuring it. You will also learn about the 4 phases of the business cycle. As you will see, the economy goes through naturally alternating periods of economic growth and recession. You will review certain sections of this chapter later in the unit.
1. Growth of Real GDP and Business Cycles
TRY IT!
The data below show the behavior of real GDP in Turkey from the first quarter of 2001 through the third quarter of 2002. Use the data to plot real GDP in Turkey and indicate the phases of the business cycle.
Period | Real GDP (billions of New Turkish lira, 1987 prices) |
---|---|
First quarter, 2001 | 24.1 |
Second quarter, 2001 | 26.0 |
Third quarter, 2001 | 33.1 |
Fourth quarter, 2001 | 27.1 |
First quarter, 2002 | 24.6 |
Second quarter, 2002 | 28.3 |
Third quarter, 2002 | 35.7 |