General
What does GDP stand for?
Gross Domestic Product
What percent of GDP does consumer spending make up?
70%
What is the definition of Business Spending?
The total amount of spending by businesses.
What is the percentage that gov. spending makes of the GDP
What percentage is deemed healthy for inflation
2%
What are the four components of GDP?
Consumer Spending, Business investments, Government spending, and Net Exports.
What is the equation to work out GDP per capita
Gross Domestic Product (GDP) / Total Population
What items do businesses buy?
Equipment
What role does it play for the GDP
It is almost always positive.
What is the difference between Nominal GDP & Real GDP?
Real GDP takes inflation into consideration when calculating final GDP, where Nominal does not take it into consideration.
Give 3 examples of consumer spending
Ex:
-buying a boat
-groceries
-buying a new car
When does business investment spending go up?
When consumer spending goes up.
What is Australia's GDP as reported in 2024
$1.7 trillion
How might a country increase its net exports?
By increasing domestic production, and/or purchasing fewer foreign products.
What was the reported Australian GDP per capita in 2021?
$60,100
What is a final good? Why is it important to only count final goods?
A good at the final stage of production. It avoids double counting within consumer spending on goods/services.
List the 4 types of Unemployment
Frictional, Structural, Cyclical, and Seasonal
What are the two types of government spending?
Discretionary & Mandatory
What do a positive net export and a negative net export mean? (Half of the total points per part.)
A positive means a trade surplus.
A negative means a trade deficit.
Why would a decrease in the GDP matter to citizens?
A decrease in the GDP, will usually cut the number of jobs available and will lead to wages being cut.
Give the definition of consumer spending
The total money spent on final goods and services by individuals or households for personal use.
List the top 5 countries by nominal GDP in the world
US, China, Germany, Japan, India
What are 3 of the 5 components to gov. spending.
The five are...Borrowing money, Defenses, Education cost, Foreign affairs, Transportation
What is "Net Exports"