Economic activity
An economy that imports and exports through international trade
What is an open economy?
The worth and ability to purchase of money
What is purchasing power?
This measures that value of current output valued at constant (base year) prices
What is real GDP?
Short term fluctuations in the growth of real output, which are alternating periods of expansion.
What are business cycles?
These are the four factors to measure sustainable well-being (The Happy Planet Index).
What are life expectancy, well-being, inequality of outcomes, and ecological footprint?
Savings, taxes, and import spending are considered
What are leakages?
This is the market value of all final goods and services produced in a country over a time period
What is gross domestic product (GDP)?
This measures the value of current output valued at current prices.
What is nominal GDP?
What is the Peak?
Statistical data used to measure national income and output and other measures of economic performance.
What is national income statistics?
Investment, government spending, and export spending are considered
What are injections?
The total income received by residents of a country
What is gross national income (GNI)?
This is a factor to measure real GDP and is a simple matter for economists to calculate real GDP from nominal GDP.
What is a price deflator?
The term for the bottom of the business cycle graph
What is the Trough?
An alternative method to standard national income accounting that measures economic well-being using numerous quality of life dimensions in addition to real GDP per capita.
What is Happiness Index?
This occurs when injections are smaller than leakages
What is shrinking income flow?
This measures the value of each good and services produced in the economy over a particular time period and then sums them up to obtain the total value of output produced.
What is the output approach?
A measure of average prices in one period relative to average prices in a base year.
What is a price index?
How long a contraction must be to be considered a depression
What is a year?
An alternative measure to standard national income accounting that measures economic well-being in a number of dimensions that take into account quality of life.
What is OECD Better Life Index?
These are the four parts of the circular flow model
What are resource markets, firms, product markets, and households?
These are the four components that make up the measure of aggregate output known as GDP
What is consumption spending, investment spending, government spending, and net exports?
A price index used to convert nominal values into real values, such as nominal GDP into real GDP, known as the 'GDP deflator'
What is price deflator?
The Y axis on a business cycle graph
What is Real GDP?
An alternative method to standard national income accounting that takes into account environmental sustainability and inequalities. It is a measure of sustainable well-being based on four dimensions.
What is Happiness Planet Index?