4.4 Economic Growth Flashcards
1
Q
Define the term “Economic development”
A
An increase in welfare and quality of life.
2
Q
Define the term “Nominal GDP”
A
Total output measured in current prices.
3
Q
Define the term “Real GDP”
A
Total output measured in constant prices.
4
Q
Define the term “Price index”
A
A way of comparing changes in the price level over time. The value of the first year in the index is set to 100 and the value of each following year is a percentage of it.
5
Q
Define the term “GDP deflator”
A
The price index of all domestically produced goods and services.
6
Q
Define the term “Recession”
A
A decline in real GDP over at least two consecutive quarters.
