10815209
Description
Mind Map by Ian De La Garza, updated more than 1 year ago
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Created by Ian De La Garza
almost 7 years ago
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ECONOMIC GROWTH: Increase in
the capacity of an economy to
produce goods and services,
compared from one period of time
to another. Read more: Economic
Growth
- Gross Domestic Product (GDP):
The dollar amount of all the final
goods and services produced
WITHIN a country’s national
borders in a year.
- Real GDP and Nominal GDP
- Real GDP: is equal to the economic output
adjusted for the effects of inflation.
- Nominal GDP: is economic output
without the inflation adjustment.
- Real GDP: is equal to the economic output
adjusted for the effects of inflation.
- GDP per capita: Real
GDP divided by
population gives you
GDP per capita
- Limitations: GDP does not
describe composition of
output. GDP does not reflect
quality of life
- Real GDP and Nominal GDP
- 3 forms to measure GDP
- Expenditure Method: Measures the
value of all spending on goods and
services in the economy
- Income Method: Measures the
value of all incomes in the
economy( Income is a way to
measure what is produce).
- Output method: Measures the actual
value of the goods and services
produced.
- Expenditure Method: Measures the
value of all spending on goods and
services in the economy
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