C22 Measuring economic growth Flashcards
1
Q
What are booms?
A
Long periods of rapid economic growth
2
Q
What is nominal GDP?
A
GDP taking into account inflation, it is less reliable
3
Q
What is real GDP?
A
GDP taking inflation into account
4
Q
What is GNI?
A
Gross national income (GDP =+ net income)
5
Q
What is GNP?
A
Gross National Product ( Total output from all citizens)
6
Q
What is Purchasing Power Parity?
A
A representation of the real value of how much you can buy with an amount of money
7
Q
What are the limitations of GDP?
A
Some governments have free health care which will lower the GDP
Doesn’t represent income inequality
Doesn’t show the hours that people work
