GDP & GNP Flashcards
(14 cards)
we use this two key metrics to measure economy
gdp and gnp
data sources are not perfect so the difference between the two calculations
statistical discrepancy
two metrics use in measuring economy
gdp and gnp
data sources are not perfect so the difference between the two calculations
statistical discrepancy
- stands for Gross Domestic Product
- GDP is the market value of all final goods and services produced within a country in a given period of time.
gdp
To do this, it uses __. Because it measure the amount people are willing to pay for different goods.
market prices
gdp includes goods that are in the market place
gdp includes goods that are currently produced
gdp includes goods that are within the country
gdp includes goods that are produced in a given period of time (year or quarter 3 months)
The spending of households on goods and services, with the exception of purchases of new housing.
consumption
The spending on business capital, residential capital, and inventories.
investment
The spending on goods and services, by local, state, and federal governments
government purchases
The spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports).
net exports
uses current prices to place a value on the
economy’s production of goods and services.
nominal gdp
uses constant base-year prices to place a value on the economy’s production of goods and services
real gdp
is the total market value of finished goods and services produced in a
certain period of time by the country’s citizens and businesses, regardless of the location they are assigned.
.
gross national product or gnp
