Test Revision Flashcards
1
Q
Inflation
A
General rise in price level
2
Q
Nominal GDP
A
GDP measured in current prices. it does not account for inflation from year to year
3
Q
real GDP
A
Real gross domestic product is a measurement of economic output that accounts for the effects of inflation
4
Q
PPF
A
shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed
