measures of national income Flashcards
What is Nominal GDP?
The money value of the output of all goods and services of a country, rising if more goods and services are produced or if prices rise.
Sometimes called money GDP or GDP at current prices.
What is Total GDP?
The value of all output produced across the whole economy over a period of time, which is nominal GDP adjusted for inflation.
Total GDP reflects the overall economic output.
What is Real GDP?
GDP at constant prices that only rises if more goods and services are produced, regardless of price changes.
Real GDP accounts for inflation.
What does Value refer to in the context of GDP?
A measure of the money value of GDP, i.e., nominal GDP.
It reflects the economic value of goods and services.
What is Per Capita GDP?
GDP per head of the population calculated by dividing total GDP by the current population of the country.
It provides a per-person average economic output.
What does Volume measure in economic terms?
The number of goods and services produced, i.e., real GDP.
It focuses on the physical quantity rather than monetary value.
What is GNI?
Gross National Income, which accounts for income flows between countries and reflects the incomes of people in the country rather than just output.
GNI is the sum of GDP and net income from abroad.
What is the formula for GNI?
GNI = GDP + net income from abroad.
This includes income residents receive from abroad minus income leaving the country.
When is GNI preferred over GDP?
GNI is considered more accurate for available income due to remittances and international aid payments.
For example, GNI in the Philippines exceeds GDP significantly.
What does the United Nations use GNI for?
To calculate the Human Development Index, which compares levels of development among countries.
GNI provides a broader view of economic well-being.
What does GDP stand for?
Gross Domestic Product.
It measures the total value of goods and services produced within a country.
What does GNI stand for?
Gross National Income.
Previously known as Gross National Product (GNP).
