The measure of national income, or the value of all goods and services, produced in a particular country.
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Gross National Product (GNP)
This is GDP + and the value of all goods and services produced by nationals abroad.
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Gross National Income (GNI)
GDP + income from domestic based foreign companies.
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GDP Per Capita
Per capita= per person. Total GDP/ Total Population
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Nominal GDP
The level of GDP at current prices.
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Real GDP
The level of GDP adjusted to account for inflation.
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Limitations of GDP
Does not show the distribution of income, quality of life, environmental costs, the Black Market.
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Inflation
The rate at which the general level of prices for goods and services is rising.
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Deflation
A decrease in general price levels throughout an economy.
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Disinflation
This is a slower rate of inflation.
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Hyperinflation
This is when a country experiences very high and usually accelerating rates of inflation.
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Stagflation
When an economy is in recession.
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Index Number
A number that expresses the relative change in price, quantity or value compared to a base period.
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Consumer Price Index (CPI)
This is an inflation indicator where a basket of goods is compared from one year to the next, and the percentage change in price on averge calculates the rate of inflation.
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Living cost and Food survey (LFC)
Annual survey based on self-reported diaries from roughly 7,000 households.
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Formula for Real Income
Money Income/CPI x 100
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Calculating the inflation rate
Price index in year 2- price index in year 1/ price index in year 1 x 100
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Limitations of CPI
Housing costs, sampling, changing tastes, changing quality of goods.
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Retail Price Index (RPI)
CPI + housing costs.
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Limitations of RPI
International comparison, link with interest.
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Inflows
Foreign currency coming into the country (Credits)
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Outflows
Foreign currency going out of the country (Debit)
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Formula of the current account
Current Account= Inflows-Outflows
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Claimant Count
Measures unemployment by counting the number of benefit claims for unemployment. It's quick and easy but can be manipulated by the Government.
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Labour Force Survey (LFS)/ ILO
The questionnaire used covers economic activity as well as household size and structure, accomodation details, and basic demographic statistics. It's hard to manipulate but expensive.
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Underemployed
People who would prefer to work longer hours or do a more demanding job.
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Other cards in this set
Card 2
Front
This is GDP + and the value of all goods and services produced by nationals abroad.
Back
Gross National Product (GNP)
Card 3
Front
GDP + income from domestic based foreign companies.
Back
Card 4
Front
Per capita= per person. Total GDP/ Total Population
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