Macroeconomics Flashcards
1
Q
Define ‘economy’
A
The study of allocating resources (Including labour resources and capital resources)
2
Q
Define ‘macroeconomics’
A
The study of the entire economy.
- Total amounts of goods and services produced (GDP)
- Total income earned
- Level of employment of productive resources
- General behaviour of prices (Inflation)
3
Q
What does GDP stand for?
A
Gross Domestic Product
4
Q
What does GNP stand for?
A
Gross National Product
5
Q
What are the differences between GDP and GNP?
A
GDP focuses on the resources and income produced within a country. It is in a distinguishable area.
GNP focuses on the resources and income produced by a country. It is borderless and can be anywhere in the world.
6
Q
How is GDP calculated?
A
Income approach and Expenditure approach.
