Theme 2 - economics growth Flashcards
Nominal value
The value of an economic variable based on current prices taking no account of changing prices over time
Real value
The value of an economic variable, taking account of changing prices through time
Potential economic growth
An expansion in the productive capacity of the economy
Gross domestic product
A measure of the economic activity carried out in the domestic economy over a period of time
Gross national product
GDP plus net income from abroad
Gross national income
GDP plus any product taxes (minus subsides) not included in the valuation of output, plus net income from abroad
Actual economic growth
The rate of growth of GDP in a period of time
GDP per capita
The average level of GDP per head of population
GNI per capita
The average of GNI per head of population
The business cycle
A phenomenon whereby GDP fluctuates around s its underlying trend, following a regular pattern
Productivity
Is a measure of the efficiency of a factor of production
Labour productivity
Is a measure of output per worker, or output per hour worked
Capital productivity
Is a measure of output per unit of capital
Total factor productivity
Is the average productivity of all the factors of production, measured as the total output divided by the total amount of resources used
Investment
Is an increase in capital stock
