Growth Flashcards
1
Q
How do you measure nominal GDP
A
Measured by adding up prices
2
Q
What could cause a decrease in Nominal GDP?
A
A decrease in output or a decrease in price(deflation)
3
Q
What is economic growth
A
An increase in real GDP
4
Q
What is the formula for real GDP growth?
A
Real GDP growth = %change in Nominal GDP growth- Inflation rate
5
Q
RGDP per capita formula
A
RGDP per capita = RGDP/size of population
6
Q
What is economic development
A
Improvement of living standards
