Lesson 5 Measuring growth as a change in GDP Flashcards
1
Q
What is real GDP?
A
A measure of a country’s GDP that has been adjusted for inflation
2
Q
What is nominal GDP?
A
The figure given without taking inflation into account
3
Q
What is Purchasing Power Parity?
A
The rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country
4
Q
What is the general relationship between life expectancy and GDP?
A
The higher the GDP is the higher the life expectancy
5
Q
Give three things that GDP does not take into account?
A
Inequality
Health
The environment
