Macro objectives and policies Flashcards
(7 cards)
1
Q
what is GDP
A
total aggregate value of final output produced within the geographical boundary of the country, regardless of ownership of FOP over 1 year and before adjustment to depreciation
2
Q
GNI is…
A
GDP + factor income earned by residents overseas - factor incomes earned by non-residents in domestic economy
3
Q
GNI is a better ____ than GDP
A
reflection of SOL
4
Q
when there is a EG/ positive growth in real GDP
A
wages are expected to rise and avg person can purchase more goods since higher dp
5
Q
LIM of national income stats to compare living standards over time
A
- does not reflect change in income distribution
- change in quality of products
- change in leisure time
- unrecorded & undeclared items
6
Q
LIM in using NY stats to compare SOL between countries
A
- diff in accuracy
- diff in income distribution
- size of underground economy
7
Q
the larger the gini coefficient…
A
the less equitable the income distribution
