Economic Growth

What is they key measure of economic growth?

Change in the real GDP

What do monthly figures look back at?

The same time in the previous year

What are yearly figures the sum of?

January to December

What is economic growth measured as?

A value not a volume

What is a value?

Money amount

What is a volume?

Quantity

What is the definition of Gross Domestic Product (GDP)?

The total value of goods and services produced inside of a country

What is the definition of Gross National Product (GNP)?

The total value of goods and services produced by individuals/firms of a certain nationality

What is the definition of Gross National Income (GNI)?

Gross domestic product plus income paid into the country by other countries for financial investment

What is the definition of Gross National Happiness (GNH)?

A measurement which tries to quantify the total happiness of a country, usually through surveys

What is the definition of Nominal GDP?

The total value of goods and services produced inside of a country

What is the definition of Real GDP?

Gross domestic product adjusted to take out the effects of inflation

What is the definition of Real GDP per capita?

Real GDP divided by the population, to give an average income per person figure

What is the definition of Real GDP growth?

The change in the amount of Real GDP, measured in percentage terms

What is the definition of Purchasing Power Parities (PPP)?

Alternative exchange rates based on comparing costs of living

What is the difference between nominal and real GDP?

Real GDP takes the efforts of inflation but nominal does not and is before inflation

How is GNP different from GDP?

GNP is goods and services produced by a certain nationality but GDP is good and services produced within a country

How is GNI different from GDP?

GNI is GDP + financial investment

When is it useful to use GDP per capita?

To understand the living standards of the average person in a country

Why is it important to convert nominal to real GDP?

Helps us see if a country has really become richer by making/selling more than before

What is the equation for nominal GDP?

C + I + G + (X-M)

What is the equation for nominal GNI?

Nominal GDP + Net Income from Abroad

What is the equation for Real GDP?

(Nominal GDP/ Price index for the year) x 100

What is the equation for Real GDP per capita?

Real GDP/population

What is the equation for GDP growth rate?

((Real GDP this year - Real GDP in year before) / Real GDP in year before) x 100

What is the index number equation?

(Real GDP for this year/ Real GDP in base year) x 100

Since when has Bhutan used GNH rather then GDP?

2008