Standard of Living and Macroeconomic Indicators Flashcards
1
Q
Define GDP
A
The total monetary value of all FINAL goods and services produced within the boundary of a country during a year.
2
Q
Define GNP
A
The total monetary value of all final goods produced by the nationals of the country during a year.
3
Q
GDP and GNP, comparison, better to be used when?
A
GDP better to measure economic performance while GNP better to assess Standard of Living.
4
Q
Define depreciation
A
It refers to the fall in external value of a country’s currency due to the market forces
5
Q
Define Devaluation
A
It refers to the fall in the forex/ external value of a country’s currency due to govt intervention.
6
Q
A
