Real GDP
This type of GDP has been adjusted for inflation.
What is real GDP?
Nominal GDP is measured using this year's ____.
What are current prices?
This is the most commonly used measure of economic growth.
What is Gross Domestic Product (GDP)?
Real GDP is considered a better measure of economic growth than this type of GDP.
What is nominal GDP?
Nominal GDP does not account for this economic facto
What is inflation?
This measure divides a country’s GDP by its total population.
What is GDP per capita?
If real GDP increases from one year to the next, it means the economy is doing this.
What is growing?
If prices rise but output stays the same, nominal GDP will do this.
What is increase?
This type of GDP removes the effects of inflation.
What is Real GDP?
The formula to calculate the rate of economic growth using Real GDP involves finding the percentage change using this formula.
What is (New GDP - Old GDP) ÷ Old GDP × 100?
The main difference between nominal GDP and real GDP is the adjustment for this.
What is inflation or price changes?
This measure includes both material and non-material living standards.
What is Net Social Welfare?
Give one limitation of using Real GDP to measure the standard of living
What is it doesn’t account for income distribution, quality of life, or non-market activities?
Give one limitation of using nominal GDP to compare economic growth over several years.
What is that it can give a misleading picture if inflation has occurred?
This term refers to the maximum output an economy can produce with its current resources.
What is productive capacity?