gdp
- Created by: fatimahkhan
- Created on: 02-06-21 19:41
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- gdp
- circular flow of income
- injections: govt spending / investment / exports
- withdrawals: savings / taxes / imports
- economic growth: the rate of change of output. shown through % change of GDP per year
- gdp: the total output of an economy during a period of time
- real gdp: adjusted for inflation. (nominal / price index) x 100
- nominal gdp: unadjusted for inflation. (real gdp x price index) / 100
- price index is called the gdp / price deflator
- price index = (nominal gdp / real gdp ) x 100
- index numbers
- a device to compare the value of a variable in one period with a base observation
- index value = (that year / base year) x 100
- gni: gdp + net income from abroad
- actual gdp: movement towards the ppf
- potential: a shift out in the ppf
- output gap: the difference between actual and potential growth
- actual gdp: movement towards the ppf
- potential: a shift out in the ppf
- output gap: the difference between actual and potential growth
- output gap: the difference between actual and potential growth
- potential: a shift out in the ppf
- actual gdp: movement towards the ppf
- output gap: the difference between actual and potential growth
- potential: a shift out in the ppf
- limitations
- inflation rate errors
- informal economy
- data inaccuracies
- gdp per capita might not work if there is only a small percentage that are richer
- spending does not necessarily increase living standards
- circular flow of income
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