National Income Flashcards
1
Q
GDP
A
Gross domestic product
2
Q
Market price
A
Factor cost +net indirect taxes
3
Q
Factor cost
A
Market price - net indirect taxes
4
Q
Net indirect taxes
A
Indirect tax- subsidies
5
Q
NFIA
A
Net factor income from abroad
From ROW- to ROW
6
Q
Capital output ratio
A
Capital/output
Low capital output ratio is desired
7
Q
Flow concept
A
Counted over a period of time
8
Q
Stock
A
Counted at a given time
9
Q
GNP
A
GDP+ NFIA
10
Q
GDP at mp
A
Market value of all goods and services
11
Q
GDP at factor cost
A
GDP at mp - net indirect taxes
12
Q
GDP deflector
A
Nominal GDP/ real GDP
13
Q
Potential GDP
A
Highest level of output while maintaining constant level of inflation
14
Q
Inflationary gap
A
Difference between real GDP and potential GDP ( at full employment)
15
Q
Product method
A
Value added method
Final value - intermediate value added
