Quantitative Methods Flashcards
What is GDP (Gross Domestic Product)?
This is the measure of the output of goods and services in a country over the span of a year.
What are real values
These are values that have been adjusted to remove the effects of inflation. This is done through index numbers which represent the changes in prices. The results are known as constant values.
Nominal values
Values that are measured in money terms. Nominal figures are unadjusted, current values
What is GNP (Gross National product)
This is the total market value of all goods and services produced by domestic residents (GDP) plus income that residents have received from abroad, minus income claimed by non residents.
What is GNI (Gross National Income)?
This is the GDP plus income paid into the country by other countries for such things as interest and dividends.
This is defined as the Sun of value added by all producers who are residents in a nation plus any product taxes (minus the subsidies) not included in output.
What are PPPs (Purchasing Power Parties)?
This is when values are expressed according with the amount that the currency will buy in the local economy.
What is inflation?
This is a general and sustained rise in prices, this is measured by a change in a weighted index of prices such as the CPI (Consumer Prices index). This is because by using an index, percentage changes are easily shown which makes for effective comparisons.
What is Deflation?
This is a fall in the general level of prices. For example, negative inflation
What is Deflation?
This is a fall in the general level of prices. For example, negative inflation
What is disinflation?
This is when prices rise at a slower rate than they have in the past. For example, inflation falling from 3% to 2%, this means that prices are rising but less quickly than they were before. This could mean that inflation is coming under stable control.
How do you calculate index numbers?
Current figure / figure in BASE time period X 100
