Paper 2

Question 1

GDP

Answer 1

It is the total monetary value of all final goods and services produced in an economy within a given time period

GDP = C + I + G + (X - M)

Question 2

Real GDP

Answer 2

GDP adjusted for inflation

Question 3

Sustainability

Answer 3

Sustainability refers to the ability of the present generation to meet its needs without compromising the ability of future generations to meet theirs

Question 4

Current account balance

Answer 4

(Exports - Imports) + net income + net current transfers

Question 5

Deficit or surplus in balance of trade in G and S

Answer 5

Exports - imports

If it’s positive its surplus