GDP Flashcards
What does GDP mean?
Gross Domestic Project
What is GDP?
it is a measure of all the activity of companies, governments and individuals in a country.
How often are new GDP figures produced?
produced monthly
What does it mean if the GDP is falling?
- bad for the business
- economy is shrinking
How is GDP measured?
- Output
- Input
- Expenditure
What does Output mean?
The total value of the goods and services produced by all sectors of the economy - agriculture, manufacturing, energy, construction, the service sector and government
What does input mean?
The value of the income generated, mostly in terms of profits and wages
What does expenditure mean?
he value of goods and services bought by households and by government, investment in machinery and buildings - this also includes the value of exports, minus imports
What are the limitations of GDP?
- Hidden economy
- Inequality
