GDP
What does GDP stand for?
Gross Domestic Product
What does the C stand for in the GDP equation
Consumer spending
How much did the economy grow by if it grew by 6%, but inflation was at 3%
6%
What does Real GDP account for that Nominal does not?
Inflation/deflation
GDP is total monetary value of what?
All finished goods and services
What does I stand for in the GDP equation
Business Investment
What is the nominal GDP if 250 cartons of eggs were sold at $2?
$500
If an economy grew by 6%, but there was inflation at 2.5%, what is the real GDP?
3.5%
GDP measures what of a country?
Its economic health and standard of living
What is it called when a country makes more on exports than they spend on imports
Trade surplus
What prices are used in calculating Nominal GDP
Current, up to date prices
When you decide what year's prices to use for calculating GDP, what is that year referred to as?
Base year
List two ways countries can increase their GDP
Increase labor force
Increase labor productivity
Technological advancement
Trade surplus
What is it called when a country spends more on imports than they make on exports?
Trade deficit
True or false: Nominal GDP is calculated using all the products sold in an economy
True
What is the calculation for the GDP deflator?
(Nominal GDP/Real GDP) * 100
List two ways GDP can decrease due to war
Destruction of capital
Death
What is the GDP equation
GDP= C + I + G + (X-M)
If an economy grew by 5%, but there was deflation of 2.5%, what is the Nominal GDP
5%
What is the calculation for inflation from 2023-2024?
GDP Deflator (2024) - GDP Deflator (2023)/GDP Deflator (2023)
You then multiply this by 100 to get it as a percent.