GDP Flashcards
1
Q
What is GDP? What does each letter stand for?
A
measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time. / Gross Domestic Product
2
Q
How is GDP Calculated?
A
GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). /C+I+G+(X-M)
3
Q
What is a recession?
A
the economy struggles, people lose work, companies make fewer sales and the country’s overall economic output declines.
4
Q
What is a depression?
A
depression, in economics, a major downturn in the business cycle characterized by sharp and sustained declines in economic activity.
