Term
|
Definition
| The total dollar value of all Goods and services produced for a country in a given time period. |
|
|
Term
| What are the three approaches to calculating GDP |
|
Definition
Expenditures approach
Value added Approach
Factor Payment approach |
|
|
Term
|
Definition
| GDP + Consumption + Investment (gross) + Government Purchases + Net Exports |
|
|
Term
|
Definition
| Revenue costs of intermediate goods = value added sum |
|
|
Term
|
Definition
Four Factors of Production:
Land
Labor
Capital
Entrepreneurship |
|
|
Term
| What is the Difference Between Nominal and Real GDP |
|
Definition
| Nominal GDP is the current year prices while REAL GDP is the value of the base year price. |
|
|
Term
| What are the problems associated with GDP being the measure of economic growth |
|
Definition
1) underground economy is not included
2) gdp is not reflection of well-being
3) GDP shifts from HH to market production |
|
|
