Evonomic Growth Flashcards
1
Q
What is economic growth
A
Growth in an economy that has a direct effect on employment levels , spending power and economic wellbeing of households
2
Q
What is GDP
A
Gross domestic product
Measure of economic growth by the total finished goods and services in a period of time
3
Q
What is GDP used for
A
Potential growth
Actual growth
Nominal growth
Real growth
4
Q
Potential growth
A
What could be produced if all resources are used efficiently
5
Q
Actual growth
A
Annual increase in output and value of production
6
Q
Nominal growth
A
Value of gdp in dollar terms
7
Q
Real growth
A
Growth of gdp
8
Q
Limitations of gdp
A
Doesn’t take into account illegal work and unpaid work
9
Q
Consumption
A
Use of goods and services by consumer spending
