Topic 1 Flashcards
1
Q
what are the 3 measures of economic activity?
A
- expenditure
- output
- income
2
Q
what is meant by ‘gross domestic product’?
A
the market value of final goods and services currently and domestically produced over a given period of time.
3
Q
how can the GDP be measured?
A
expenditure or income or output
4
Q
formula to calculate GDP:
A
Consumption + investment + government spending + net exports
5
Q
what is the most common way to measure a country’s economic performance using the national income accounts?
A
gross domestic product and its annual change
6
Q
A
