economic growth e.g gdp

• gross domestic product (GDP)


  total value of all goods and services produced within a country in a given period of time
• output method


  measures the value of goods and services produced by calculating the value of its output
• income method


  adds up all sources of income in an economy
• expenditure method


  calculates GDP by adding up the sum of all final good and services purchased in an economy
• GDP growth

  how the rate of economic growth is measured
• gross national income (GNI)


  total national output of goods and services + net income from overseas
• remittances


  funds that migrants send back to their home countries
• foreign aid


  income from other countries or international organisations that is transferred to poorer countries
• ownership of foreign assets


  government or a domestic company buys an asset overseas
• gross national happiness (GNH)

  multidimensional measure of development
• easterlin paradox


  increases in GDP do not always lead to an increase in happiness
• nominal GDP


  GDP at current prices
• real GDP


  GDP that takes into account inflation
• GDP deflator


  price index which measures average prices in one year to a 'base year
• GDP per capita


  GDP that takes into account the population size of a country or region
• GDP (purchasing power parity)


  GDP that compares the buying power of different countries' currencies
• non-market


  housework is usually unpaid
• informal market


  some activity is not paid for via digital or electronic means so there is no record
• black market


  some goods are illegal and therefore are not recorded
• economic cycle


  describes the fluctuations in an economy
• economic boom


  period of rapid GDP growth
• downturn


  period of significant decline in GDP
• economic recession


  two consecutive quarters of GDP decline
• recovery


  a phase where GDP activity increases following a recession
• actual GDP


  current value of GDP at a point in time
• potential GDP


  maximum productive capacity at a point in time
• output gap


  the difference between actual and potential GDP
• positive output gap


  when actual GDP exceeds potential GDP
• negative output gap


  when actual GDP is below potential GDP
• capital good


  a good used to create or supply consumer goods
• consumer good


  a good used to satisfy consumer wants and desires