lesson 6 Flashcards
study of the economy as a whole. branch of economics that concerns itself with market systems that operate on a large scale
macroeconomics
period of steady growth in output, along with an improvement in living standards
economic growth
it is to achieve a high and growing national outpute level to meet the population’s demands.
economic growth
market value of all final goods and services produce within a nation in a given time
gross domestic product
the measure of output is based on current prices
nominal gdp
the measure of output is based on changes in inflation
real gdp
formula of gdp
GDP = C + I + G + (X-M)
c - consumption
i - investment
g - government expenditure
x - exports
m - imports
approach where gdp is based on households, businesses, and the government in a given period
expenditure approach
approach where gdp is based on the earnings of the households, businesses, and the government in a given period
income approach
approach where the gdp is the sum of the amount of final goods and services produced and multiplied by their respective prices in a given period
flow of product approach
approach wherein gdp is the sum of the output (GVA) of the economy’s major industries for a given period.
gross value added (gva) approach
goods that are ready to consume
final goods
market value of all final goods and services produced by nationals of a country for a given period
Gross National Product
formula for GNP
GNP = GDP + NFIA
NFIA
net factor income abroad
