GDP Flashcards
1
Q
GDP definition
A
The market value of all final goods and services produced in a nation within a specific period of time.
2
Q
NIKE factory in Japan - counted?
A
NO
3
Q
Japanese factory in Texas - counted?
A
Yes
4
Q
Car produced in 2014 - sold in 2016. Counted in which year?
A
2014
5
Q
Business Cycle - definition
A
Short term fluctuations around the long term trend
6
Q
During recession, Real GDP is negative - true or false?
A
FALSE - Real GDP is positive, RATE OF GROWTH of GDP is negative
7
Q
GDP per capita formula
A
GDP/Population
8
Q
Real GDP formula
A
nominal GDP/ Price Index
(of that year with respect to base year)
9
Q
Nx +ve - trade deficit or surplus?
A
Surplus
10
Q
GDP as expenditure equation?
A
Y = C + G + I + Nx
