Indciators And Uses Of National Income Data Flashcards
What is a key measure of economic health?
“The value of goods and services produced in the economy over a period of time”
How do you calculate GDP?
National income = National Expenditure = National Output
What is national expenditure?
Consumption + investment + government spending + net exports
What is national income?
Adding up all an economy’s incomes (wages, interests, profits and rent)
What is national income?
Adding up all an economy’s incomes (wages, interests, profits and rent)
What is national output?
The value of output from each of the main economic sectors
What are the main economic sectors of GDP (value of output)
- Primary
- Secondary
- Manufacturing
- Quaternary
What is aggregate demand?
Exports - Imports = GDP (aggregate demand)
What is Real Gross Domestic Product?
“The value of goods and services produced in the economy over a period of time taking into account inflation”
What is Real Gross Domestic Product?
“The value of goods and services produced in the economy over a period of time taking into account inflation”
What is nominal value?
Expressed in monetary terms (current prices)
What is real value?
Adjusted for inflation by judging figures against a base year
How to convert from nominal terms to real terms?
Real value = Index of comparison period (usually base year) / index of current period x nominal value
What is total national income (GDP)?
The value of all goods and services produced in a country
What is Per Capita Income (GDP Per Capita)?
Total income divided by the number of people in a country, ie. Total GDP per person. A better indicator not as skewed by population
What is GDP by Volume?
The quantity of goods and services produced in a country
What is GDP by Value?
The monetary worth of the goods and services produced by a country
What is Gross National Income (GNI)?
The total level of income of a country - GDP plus net income from abroad (eg. Interests and dividends)
What is Short-Run Growth?
“The actual annual percentage change in real national output”
What is Short-Run Growth?
“The actual annual percentage change in real national output”
What is Long-Run Growth?
“An increase in the potential productive capacity of the economy”
GDP (Expenditure)?
- Consumption
- Government spending
- Investment spending
- Change in value of stocks
- Exports - Imports = GDP (aggregate demand)
GDP (Factor Incomes)?
- Income from people in jobs and self-employment (eg. Wages and salaries)
- Profits of private sector businesses
- Rent income from the ownership of land
GDP (Value of Output)?
- Value added from each of the Maine economic sectors (Primary, Secondary, Manufacturing, Quaternary)
