Edexcel Economics Theme 2 Questions & Correct Answers/ Graded A+

GDP : Gross domestic product measures the value of goods and services produced in an economy, it also measures national income/national expenditure Nominal GDP : Measures the monetary value of GDP (this may include the effects of inflation) Real GDP : Measures GDP adjusted for the effects of inflation, it measures the actual purchasing power of consumers in an economy GDP per capita : Is the level of GDP divided by population The volume of goods and services : Is the quantity produced 2 The value of goods and services : Is the quantity x price Economic growth : An increase in real GDP, referring to an increase in the total value of goods and services produced in an economy The rate of economic growth : Measures the annual percentage change in real GDP GNP : Gross national product is equal to GDP + net property income from abroa