More Finals Flashcards
1
Q
How do you calculate GDP
A
goods + services
2
Q
How do you calculate CPI
A
(current costs/base costs) x 100
3
Q
How do you calculate real GDP
A
(GDP for time period/CPI for time period) x 100
4
Q
What 4 things are taken into account for GDP spending?
A
consumption, investment, government, and net exports
5
Q
Money is created by what?
A
Bank lending
6
Q
The process of trading goods and services via a “time bank” is called
A
mutual credit system
7
Q
how do price floors effect the economy?
A
they create surpluses
8
Q
how do price ceilings effect the economy?
A
they create shortages
