Chapter 8-9, useless chapters, ADAS stuff

Question 1

Define gross domestic product (GDP)

Answer 1

The total money value of all final goods and services produced in an economy in a given time period, usually one year.

Question 2

Define gross national income (GNI)

Answer 2

The total money value of The total money value of all final goods and services produced in an economy in one year, plus net property income from abroad (interest, rent, dividends and profit).

GNI = GDP + net income from abroad

Question 3

Define national gross domestic product (national GDP)

Answer 3

The total money value of all final goods and services produced in an economy in a given time period, usually one year, at current values/the time of measurement (not adjusted for inflation).

Question 4

Define real gross domestic product (real GDP)

Answer 4

The total money value of all final goods and services produced in an economy in a given time period, usually one year, adjusted for inflation/ that have eliminated the influence of changes in prices.

Question 5

How to calculate GDP deflator?

Answer 5

Nominal GDP/Real GDP * 100

just like percentage, EZ

Question 6

Define purchasing power parity (PPP)

Answer 6

A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.