measures of economic activity Flashcards
what are the three methods of measuring economic activity
incomes that firms pay out
total amount of output that is produced
total expenditure
which measurement is in the published data
an average of all of the 3 measurements
what does the income - side estimate show us
shows how households spend their incomes e.g. tells us the balance of CELL
what does the output - side estimate tell us
shows the economic structure of the economy e.g. the balance of primary, secondary and tertiary activities
what does the expenditure - side estimate show us
it shows how resources are being used e.g. what proportions are investment VS consumption
what is income
income is the amount of income that can be earned during a period of time
what type of concept is income
a flow concept
what is wealth
wealth is the accumulation of assets such as property or shares
what type of concept is wealth
a stock concept
why can an inequality in wealth lead to an inequality in income
because wealth can create an income flow
what does GDP stand for
gross domestic product
what is Nominal GDP
the value of national output of goods and services expressed at current prices
what is Real GDP
adjusts the level of money using a consumer price index
does real of nominal GDP consider inflation
Real
does real or nominal GDP give monetary values
Nominal
