Economics Edexcel - Flashcards 2.1 - Economic Growth

GDP
What is economic growth?
How is economic growth measured?


What is potential VS actual growth?
What is GDP?


QUESTION




Economics growth is a measure of an increase in real GDP. This is measured by the
annual % change in real GDP.
This is known as actual economic growth.


> Potential economic growth is a measure of the increase in the productive
capacity of an economy and can be shown as a movement outward of the PPF
curve.


GDP is the the total amount/value of goods and services produced in a country in
1 year.




ANSWER

, Economic growth



What is meant by economic growth ?
What is meant by real and nominal GDP ?
What is the difference between value and
volume ?



QUESTION

Real GDP: is the nominal GDP adjusted for inflation.


Nominal GDP: is simply the money value of all goods and services
produced by a country in 1 year.


Total GDP: represents the overall GDP for the country.


GDP per capita: is calculated by dividing by GDP the country’s population.



Volume is the volume of Value is the value of output, it
output,it measures the measures the amount of goods
number/amount of and services produced by the
goods produced. price at which they are sold.
ANSWER