Econ

• Measures of economic growth

  • GDP
  • Nominal GDP
  • Real GDP
  • GDP per capita
  • GNI
• GDP (Gross Domestic Product)


  Represents the total value of goods and services produced over a given period of time in a nation's borders
• Nominal GDP


  The total value of goods and services produced in an economy, unadjusted for inflation
• Real GDP


  Nominal GDP adjusted for inflation, which reflects the actual increase in value
• GDP per capita


  Real GDP divided by total population
• GNI (Gross National Income)


  Income earned by domestic workers and firms, less income earned by foreign firms and workers
• Methods of calculating GDP

  1. Expenditure approach (C+I+G+X-M)

  2. Income approach (summing total national income)