Economic Growth

Question 1

When does economic growth occur?

Answer 1

When there is a rise in the value of GDP

Question 2

What does GDP measure?

Answer 2

total goods and services produced within a year in an economy

rise in economic growth means increase in national output

Question 3

What does economic growth lead to?

Answer 3

Rise in living standards, more employment opportunities

Question 4

Real GDP

Answer 4

value of GDP adjusted for inflation

Question 5

Nominal GDP

Answer 5

Value of GDP without the effects of inflation

Question 6

Total GDP

Answer 6

combined monetary value of all goods and services produced within a country’s borders in a specific time period

Question 7

GDP per capita

Answer 7

value of total GDP / total population of country

• useful for comparing the relative performance of countries

Question 8

GNP - Gross National Product

Answer 8

Total amount of goods and services produced in a year , including all contributions made by both citizens and property owned by the country, regardless of whether it was produced inside or outside a country’s borders