Summary Best marco notes for year 1 and 2

Economic
Growth
Nominal GDP
The prices of goods and services
within an
economy

Real GDP
The quantity of goods services
produced

Economic growth
An increase in real Gdp over a

given period
Real GDP nominal Inflatio
economic Rate
growth

, g

GDP per capita
real Gdp population
so purchasing power parity is
used
This measures how of a
currency
is need to purchase a basket of
goods compared to another
currency


GDP limitations when using to
measure living Standards
Ignores population changes
Ignores income distribution
Ignores types of goods Services
Ignores underground economies
Ignores subsistent economies