Edexcel A-level Economics Theme 2 with Complete Solutions

Edexcel A-level Economics Theme 2 with Complete Solutions Macroeconomics - Correct Answer The study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand - Correct Answer The total amount of goods / services demanded in an economy at a given time at a given price level. Aggregate supply - Correct Answer Total amount of goods and services supplied in the economy at a given time at given price level. What is GDP? - Correct Answer Gross Domestic Product = the total value of all goods and services produced in an economy in a given time period. What does % change in GDP show? - Correct Answer The rate of economic growth in an economy Difference between real GDP and nominal GDP? - Correct Answer Real = adjusted for inflation. Nominal = A monetary amount not adjusted for inflation Difference between total GDP and GDP per capita? - Correct Answer Total GDP = Total GDP in an economy. GDP per capita = Total GDP/Total Population What is Gross National Income (GNI)? - Correct Answer The total amount of money earned by a country's people and businesses plus net overseas interest payments and dividends. Who has the 3 biggest GDPs in the world? - Correct Answer 1st = USA, 2nd = China, 3rd = Japan Disadvantages of using GDP to compare economic growth? (4) - Correct Answer 1. Inaccurate data (black markets/ ta