GDP Flashcards
What is total GDP?
Overall amount of goods and services a country produce a year
What is GDP per capita?
The total GDP divided by the number of people in the country
What is real GDP?
Accounts for inflation
What is nominal GDP?
Does not account for inflation
What do nominal values show?
The volume of the basket of goods
They show how much are produced
What do nominal values represent?
The value of the basket of goods
They show how much the goods are worth
How do you work out nominal GDP?
Times the quantity and price together
How do you work out Real GDP?
Times the quantity with the original price in the base year
What is gross national income?
The value of goods and services as well as income made in the form of investments or dividends from outside of the country
What are remittances?
Money paid to other countries
How is GNI used?
Subtracts remittances
Adds dividends
What does a growth in national income lead to?
A rise in living standards
What is GPI?
The genuine progress index this shows how living standards are affected by economic growth
What is aggregate demand?
The demand for goods and services
