part a- rates of change GDP

• how can Econ growth be measured?

  change in national output over a period of time
• what is the national output?

  all goods and services produced by a country
• how can output be measured- volume?

  adding up quantity of goods and services produced in one year
• how can output be measured- value?

  calculating value of all goods and services produced in 1 year
• how is national output measured by value?

  GDP
• how can GDP be measured?

  value of all goods/services produced in an economy in a one-year period
• what is GDP an indicator of?

  standard of living in a country
• how is GDP measured expenditure approach?

  adds up the value of all the expenditure in the economy

  • This includes consumption, government spending, investment by firms and net exports (exports - imports)
• The income approach: adds up the rewards for the factors of production used

  • Wages from labour, rent from land, interest from capital and profit from entrepreneurship