GDP Basics
What does GDP stand for?
Gross Domestic Product
Real GDP is GDP after fixing for what?
Inflation / rising prices
The biggest piece of U.S. GDP (about 70%) is people buying what?
Goods and services / shopping and bills
Lower interest rates make it easier to do what—borrow or save?
Borrow
Which country has the biggest GDP in 2025?
United States
GDP is the total money value of what a country makes—goods and what else?
Services
The price level we use to compare different years is called the what?
Base year
When businesses buy machines or tech to make more later, it’s called what?
Investment
When people feel good about the economy, what happens to spending?
They spend more
Which country is #1 if you adjust for cost of living (PPP)?
China
We usually measure GDP for what time period?
Every Quarter or Year
Why is Real GDP better for seeing true growth than normal GDP?
It ignores price jumps and shows real output
When the government builds roads or pays teachers, that counts as what?
Government spending
Name one thing that helps a country grow long-term (like skills or tech).
Better education / technology / good roads
Which country’s economy is growing fastest, around 6%?
Name one reason a country cares about its GDP.
To see if the economy is growing or slowing / set government plans
When we take Real GDP and divide by how many people live there, what do we get?
Real GDP per person / per capita
What do we call exports minus imports?
Net exports
Political drama or oil price spikes can cause what to GDP?
Ups and downs / slowdowns
What does PPP adjust for when comparing countries?
Cost of living / prices
Does GDP count things made halfway (like raw materials) or only finished items?
Only finished Products
If prices go up but production stays the same, what will Real GDP look like?
Flat / no real growth
If imports are bigger than exports, what happens to GDP?
It goes down / shrinks a little
The side of the economy that’s about people and businesses buying is called what?
Demand side
Name two other big money players besides U.S., China, and India.
Any two: Germany, Japan, UK, France, Italy, Canada