Definition

Question 1

Output method

Answer 1

To add up the value of all the goods and services produced by firms in the economy

Question 2

Expenditure method

Answer 2

Add the value of everything that households in the economy buy

Question 3

Income method

Answer 3

Add up the amount by that firms pay households for the factors of production

Land , labour , capital and enterprise

Question 4

What is there not in a closed economy ?

Answer 4

International trade

Question 5

Income

Answer 5

A flow variable

Generated or received over time such as a salary

Question 6

Wealth

Answer 6

A stock variable

Value of assets someone has at a given time such as property and bank balance

Question 7

Capital

Answer 7

Intrest

Question 8

Land

Answer 8

Rent

Question 9

Labour

Answer 9

Wages

Question 10

Enterprise

Answer 10

Profit

Question 11

What are the 3 withdrawals

Answer 11

Imports

Taxation

Saving

Question 12

Imports

Answer 12

Goods bought from abroad

Question 13

Taxation

Answer 13

Compulsory payment to the government

Question 14

Saving

Answer 14

Income not spent

Question 15

What are the 3 types of injections?

Answer 15

Exports

Govement spending

Investment

Question 16

Exports

Answer 16

Domestic goods sold abroad

Question 17

Investment

Answer 17

In this sense spending previous savings

Question 18

GDP

Answer 18

Value of all the goods and services produced in an economy in a given time period

Question 19

Nominal GDP

Answer 19

Measure using current prices

Question 20

Real GDP

Answer 20

Measured at constant prices , to remove impact of inflation in data collected overtime