Definitions and Concepts
What does GDP stand for?
What is Gross Domestic Product?
This component of GDP includes household spending on goods and services.
What is Consumption?
This approach to measuring GDP totals the value added at each stage of production.
What is the Production Approach?
A rising GDP is typically associated with this state of the economy.
What is Economic Growth?
This type of GDP is adjusted for inflation.
What is Real GDP?
This part of GDP consists of business investments in capital goods.
What is Investment?
This method calculates GDP by summing all incomes earned in the production of goods and services.
What is the Income Approach?
This term refers to a decline in GDP for two consecutive quarters.
What is a Recession?
This measures the total value of all goods and services produced within a country’s borders.
What is GDP?
Government spending on public services and infrastructure falls under this component of GDP.
What is Government Spending?
Which method calculates GDP by adding up consumption, investment, government spending, and net exports?
What is the Expenditure Approach?
GDP does not consider this important aspect that impacts the overall well-being of a country's population.
What is Income Distribution?
This metric provides a per-person measure of GDP.
What is GDP per capita?
This component of GDP is calculated as exports minus imports.
What is Net Exports?
This term describes the adjustments made to GDP figures to account for seasonal variations.
What is Seasonal Adjustment?
High GDP growth can lead to inflation, which is an increase in this.
What is the general price level of goods and services?
GDP includes all production within a country, regardless of who owns the production. What is this concept called?
What is the domestic production principle?
In the equation GDP = C + I + G + (X - M), what does "X" represent?
What are Exports?
GDP is often reported in these two forms to indicate changes over time.
What are Nominal GDP and Real GDP?
When GDP is calculated without accounting for environmental costs, it may be misleading in this context.
What is Sustainable Development?