Summary

The economic cycle shows the rate of economic growth over time in an economy

Boom periods are characterised by rapid levels of economic growth

A recession is a period where economic growth has declined

Changes in the rate of economic activity can be caused by factors that influence aggregate supply or increase the productive capacity of the economy

Fluctuations in economic activity are caused by demand and supply side

The trend rates of economic growth shows the average rate of growth in the economy over a period of time

Economic growth provides benefits including higher levels of employment and standards of living

Economic growth can also lead to costs including environmental damage and inflationary pressures

National income statistics can be used to compare the standard of living between countries

GDP figures can be crude indicators of economic growth and other factors should be considered