GDP Flashcards
What is GDP?
Th value of all newly produced final goods and services produced in an economy writhing a given time period.
What is output measure?
Total value of all outputs of an economy.
What is expenditure measure?
Value of all goods bought in an economy.
What is income measure?
The value of income generated in an economy.
What are the ways to measure GDP?
Output measure
Expenditure measure
Income measure
What are the limitations to GDP?
Hidden economy
Inequality
Miscounted goods
Negative jobs
What is a hidden economy in GDP?
Unpaid work will not be captured in figures, so that kind of work is not acknowledged.
What is inequality with GDP?
It will not tell how income is split, so it could be showing the rich getting richer.
What is miscounted goods in GDP?
Some ‘finished goods’ may be sold again, e.g eggs will be counted when sold at a store; but if these eggs are made into a cake and the cake is sold the eggs will be counted twice.
What is negative jobs with GDP?
GDP may be added to through negative products that negatively affect quality of life.
