GDP Flashcards
(12 cards)
what is GDP
growth domestic product, it is a measure of total value in USA dollars of all goods and services sold.
Gross definition
total value of something before depreciation (how much it was when it was first made)
domestic definition
production within a country
Product
goods and services
Recision
economic growth is declining for six+ months in a row
Key indicators of economic performance
Unemployment rates
Inflation
GDP
GDP formula
consumption + investment +government spending and exports - imports
Nominal GDP
actual number today in todays dollars
Real GDP
adjusted for inflation, a better indicator of living
standards and is easier to compare with past dollars
GDP per capita
average GDP per person in a country, very useful when comparing countries
With different population sizes.
Strengths of GDP
simple to interpret and calculate
can be used most times as an indicator of living standards
weaknesses of GDP
does not include transactions that occur off the books or non market transactions
does not factor in the well being of all people or the distribution of income
