Measuring Economic Growth Flashcards
What are the 4 main macroeconomic indicatiors
Rate of economic fpgrowth
Rate of inflation
Level of unemployment
State of balance of payments
What can economic growth be measured by
Change in national output over a period of time
What does national output mean
All the goods and services produced by a country
What 2 ways can output be measured by
Volume - Adding up the quantity of goods and services produced in one year
Calculating value of all the goods and services produced in one year
What is national output usually measured by
Gross domestic Product
How can GDP be calculate
By adding up total amount of national expidenture in a year
Adding up total amount of national income earned in a year
What does boom mean
Long period of high economic growth rate
What does slump mean and what does recession mean
Negative economic growth for 2 consecutive quarters = recession
Long recession =slump
Formulae to measure economic growth
Change in GDP / original gdp x 100
What does real GDP.mean
When effect of inflation is removed
What can GDP be used to give and indication to
Indication of countries standard of living
What is GNI
GDP plus net income abroad
What is GNP
Total output of citizens of a country whether there a resident or not
GNI and GNP can be used to measure …
Standards of living between countries
How is GDP per capita calculated
Total GDP / population size
