Economics Gdp Study Cards

Enhance Your Learning with Economics - Gross Domestic Product (GDP) Flash Cards for quick understanding



Gross Domestic Product (GDP)

The total value of all final goods and services produced within a country's borders in a specific time period, usually a year.

Nominal GDP

The GDP measured at current market prices without adjusting for inflation.

Real GDP

The GDP adjusted for inflation, providing a more accurate measure of economic growth.

GDP per Capita

The GDP divided by the total population of a country, representing the average income per person.

Consumption

The spending by households on goods and services, including durable goods, non-durable goods, and services.

Investment

The spending by businesses on capital goods, such as machinery and equipment, and the construction of new buildings.

Government Spending

The spending by the government on goods and services, including public infrastructure, defense, and public programs.

Net Exports

The value of a country's exports minus the value of its imports, representing the contribution of international trade to GDP.

Economic Growth

An increase in the real GDP of a country over time, indicating an expansion of the economy.

Standard of Living

The level of material well-being and quality of life experienced by individuals in a country, often measured by GDP per capita.

Inflation

A sustained increase in the general price level of goods and services in an economy, reducing the purchasing power of money.

Unemployment

The state of being without a job, typically measured as a percentage of the labor force.

Frictional Unemployment

Temporary unemployment that occurs when individuals are transitioning between jobs or entering the labor market for the first time.

Structural Unemployment

Unemployment caused by a mismatch between the skills and qualifications of workers and the available job opportunities.

Cyclical Unemployment

Unemployment that occurs due to fluctuations in the business cycle, with higher unemployment during economic downturns.

Natural Rate of Unemployment

The level of unemployment that exists when the economy is at full employment, consisting of frictional and structural unemployment.

GDP Deflator

A price index that measures the average change in prices of all goods and services included in GDP, used to calculate real GDP.

Limitations of GDP

GDP does not account for non-market activities, underground economy, income distribution, environmental impact, and quality of life factors.

GDP per Capita Growth Rate

The percentage change in GDP per capita over a specific time period, indicating the rate of economic growth per person.

GDP and Trade Balance

The relationship between GDP and the balance of trade, where a trade surplus contributes positively to GDP and a trade deficit negatively.

GDP and Exchange Rates

The impact of exchange rate fluctuations on GDP, as changes in currency values affect the value of imports and exports.

GDP and Economic Development

The role of GDP in measuring and promoting economic development, including improvements in infrastructure, education, and healthcare.

GDP and Business Cycle

The relationship between GDP and the phases of the business cycle, with expansions and contractions affecting economic output.

GDP and Fiscal Policy

The use of government spending and taxation to influence GDP and stabilize the economy, known as fiscal policy.

GDP and Monetary Policy

The use of interest rates and money supply to control inflation and stimulate economic growth, known as monetary policy.

GDP and Economic Indicators

The use of GDP as a key economic indicator to assess the health and performance of an economy.

GDP and International Comparisons

The comparison of GDP between countries to analyze economic differences, development levels, and living standards.

GDP and Economic Well-being

The relationship between GDP and the overall well-being of individuals, considering factors beyond economic output.

GDP and Sustainable Development

The consideration of environmental and social factors in GDP measurement to promote sustainable economic growth.

GDP and Human Development Index (HDI)

The use of GDP in calculating the HDI, a composite index that measures the overall development of a country.

GDP and Poverty

The impact of GDP on poverty reduction, as economic growth can contribute to higher incomes and improved living conditions.

GDP and Income Inequality

The relationship between GDP and income distribution, as economic growth does not necessarily lead to equal distribution of wealth.

GDP and Economic Policies

The influence of GDP on the formulation and evaluation of economic policies, including fiscal, monetary, and trade policies.

GDP and Economic Forecasting

The use of GDP data to predict future economic trends and make informed decisions in business and policy-making.

GDP and Economic Stability

The role of GDP in maintaining stable economic conditions, including low inflation, low unemployment, and sustainable growth.

GDP and Economic Resilience

The ability of an economy to withstand and recover from external shocks and economic crises, often measured by GDP growth rates.

GDP and Economic Integration

The impact of GDP on regional and global economic integration, as countries engage in trade and cooperation to enhance economic growth.