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8 Cards in this Set
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GDP |
Gross domestic product: is one of the primary indicatorsused to gauge the health of a country's economy. It represents the total dollarvalue of all goods and services produced over a specific time period(quarterly).Y=C+I+G+NX |
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NominalGDP |
Evaluated at current market prices, GDP beingthe monetary value of all the finished goods and services produced within acountry's borders in a specific time period. |
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RealGDP |
Is a macroeconomic measure of the value ofeconomic output adjusted for price changes (i.e., inflation or deflation). Thisadjustment transforms the money-value measure, nominal GDP, into an index forquantity of total output. |
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Componentsof GDP |
Personal consumption expenditures, Investments,Net exports, and Government Expenditure |
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ShortComing of GDP |
Non-market Transactions, Leisure, ImprovedProduct Quality, The underground Economy, GDP and the Environment, Compositionand Distribution of Output, and Per Capita Output |
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TotalIncome= Total expenditure |
Every transaction has a buyer and a seller. -Every dollar of spending by some buyer is a dollar of income for some seller.Gross domestic product (GDP) is a measure of the income and expenditures of aneconomy. |
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DifferenceBetween nominal GDP and real GDP |
The economic worth of all goods and servicesproduced in a given year, adjusted as per changes in the general price level isknown as Real Gross Domestic Product. Nominal GDP is the GDP without theeffects of inflation or deflation whereas you can arrive at Real GDP, onlyafter giving effects of inflation or deflation |
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GDPdeflator |
The measure of the level of prices of all new, domestically produced, final goods and services in an economy.GDP stands for gross domestic product, the total value of all final goods and services produced within that economy during a specified period. |
