economic growth

• what is the main aim of economics

  economic growth
• what model shows the flow of GDP: circular flow model and GDP
• what are 3 injections


  government spending, business investment, exports
• what are 3 withdrawals


  tax, saving, imports
• what transfers from households to firms: expenditure and factors of production
• what transfers from firms to households: goods, services and income
• what is an example of a factor of production: labour
• G


  government spending
• I

  business investment
• X

  exports
• T

  tax
• S


  savings
• M


  imports
• how is GDP measured: what is spent, made and earned
• how do you measure GDP

  expenditure, output and income
• which is greatest out of expenditure, output and income: they are equal
• how do you measure expenditure: add up all spending by household (consumer spending)
• how do you measure income: add up all factors of incomes earned
• how do you measure output: add up market value of all finished goods and services
• what is household spending known as

  consumer spending
• how to measure GDP per capita

  GDP / population
• nominal GDP

  GDP measured at today's prices
• real GDP


  GDP - inflation
• formula for nominal GDP into real GDP: (100/price index) X nominal GDP = real GDP
• PPP


  purchasing power parities
• what is a PPP meant to do: adjust for different costs of living
• exchange rates: constant change due to willingness to buy and sell
• what is the main rule of exchange rates: exchange rates don't reflect cost of living
• GDP


  gross domestic product
• GDI

  gross domestic income
• GNI

  gross national income
• GNP

  gross national product
• what does GDP not include

  transfer payments
• GDP growth: GDP measured in one period compared with a previous period
• GDP yoy


  GDP measured a year apart
• GDP qoq: GDP measured from one quarter compared with a previous quarter
• if GDP is positive does the economy grow

  yes
• if GDP is negative for 2 consecutive quarters, what is it called: a recession
• what is the equation for GDP: C + I + G + (X-M)
• which measurement gives the best indication for living standards: GDP per capita