Macreconomics 2.1

Question 1

What is GDP?

Answer 1

Gross Domestic Product is the standard measure of output; it is the total value of goods and services produced in an economy in a year

Question 2

What is total gdp?

Answer 2

Total GDP represents the overall GDP for the economy/ country

Question 3

What is GDP per capia?

Answer 3

The total GDP divided by the number of people in a country.

Question 4

What is real GDP?

Answer 4

Real GDP is the GDP value which doesn’t include inflation.

Question 5

What is Nominal GDP?

Answer 5

Nominal GDP is the value of inflation which does include inflation.

Question 6

What is GNI?

Answer 6

Gross National Income is the value of goods and services produced by a country or economy over a period of time plus net overseas interest payments and dividends.

Question 7

What is Gross National Product?

Answer 7

The value of goods and services over a period of time through labour or property supplied by citizens of country both domestically and overseas.

Question 8

What are purchasing power parities?

Answer 8

The value of a currency expressed in terms of the number of goods or services that one unit of money can buy.

Question 9

What are some problems of GDP?

Answer 9

Inaccuracy of data due to the black market and informal sector
- Other factors such as happiness index, life expectancy, national welbeing are taken into consideration to look at the standard of living.