2. Economic Growth

Question 1

Economic Growth Definition

Answer 1

An increase in output of the value of goods and services in the country, usually measured annually

Question 2

Short Run GDP

Answer 2

The actual percentage change in real national output

Question 3

Long Run in GDP

Answer 3

An increase in the potential productive capacity of the economy. Measured on the Productive Possibility Frontier.

Question 4

GDP

Answer 4

Gross Domestic Product
The value of goods and services produced in the economy over a period of time. Measure by using a basket of goods that are commonly bought.

Question 5

Real GDP

Answer 5

The value of goods and services produces in the economy over a period of time, taking into account inflation

Question 6

Nominal Value

Answer 6

Expressed in monetary terms

Question 7

Real Value

Answer 7

Takes inflation into account

Question 8

Real National Output Formula

Answer 8

Normal National Output/Average Price Level

Question 9

Total National Income

Answer 9

Value of all goods and services produced in this country

Question 10

Per Capita Income

Answer 10

Total income divided by the number of people in the country

Question 11

Gross National Product (GNP)

Answer 11

Value of all goods and services produced by domestic businesses both at home and abroad, includes overseas assets

Question 12

Gross National Income (GNI)

Answer 12

Total level of income of a country