GDP Flashcards
1
Q
What does GDP stand for?
A
Gross Domestic Product
2
Q
What does GDP measure?
A
GDP measures the production inside a countries boarder’s.
3
Q
What is real GDP?
A
excludes inflation and is more realistic with constant prices.
4
Q
What is nominal GDP?
A
Includes inflation and has the current prices.
5
Q
What is factor cost?
A
Amount received by various factors of production.
6
Q
What is Basic prices?
A
Initial price before any taxes
7
Q
What is market price?
A
The price consumer spay and what is used to measure GDP
8
Q
What are 3 methods of calculating GDP?
A
- Expenditure method (GDE
- Value added (GVA)
- Income (GDI)
9
Q
How do you calculate expenditure method?
A
- GDE = C+I+G+residual items
- GDP at market prices = GDE + (X-M)
- GDP(E) = C+I+G+ residual items + (X-M)
10
Q
How do you calculate income method?
A
GDP(Y) = W+R+I+P
11
Q
How to Calculate Nominal GPD?
A
Real GDP x CPI/100
12
Q
How to Calculate Real GPD?
A
Nominal/CPI x 100
13
Q
How to Calculate GDP Growth?
A
Old GDP - New GDP / Olds GDP x 100
