Econ. Ch. 12 Flashcards
1
Q
Gross Domstic Produst (GDP)
A
Gross Domestic Product dollar value of all final good, services, and structures produced within a country’s national borders during a one year period.
2
Q
Real GDP & Normal GDP
A
Real GDP- measured with a the original price for the product (most accurate)
Normal GDP- measured with the current price of the product.
3
Q
GDP Per Capita
A
Is a better measure of economic prosperity because populations of countries are all different.
4
Q
Income and expenditure approach
A
Calculates GDP by adding up all the incomes in the economy. 71% wadges 20% profits 7% Interest income 2% Rental income
5
Q
Business cycle (phases)
A
A micro economic period of expansion or contraction.
6
Q
Interest rates
A
The portion of a loan that is added back to the loaner.
