EKN Test 1: GDP and National Income Accounting

Vocabulary flashcards covering the key concepts and objectives for EKN Test 1, focusing on national income accounting and economic measures.

GDP

Gross Domestic Product; a measure defined and measured to represent the total value of goods and services produced within a country.

GNI

Gross National Income; a measure defined and measured to represent the total income earned by a nation's residents and businesses, including money earned abroad.

NDP

Net Domestic Product; a macroeconomic measure that relates to GDP by accounting for the depreciation of capital goods.

NI

National Income; the total amount of money earned within a country, showing a specific relationship to GDP, NDP, GNI, and DI.

DI

Disposable Income; the amount of money that households have available for spending and saving after income taxes have been accounted for.

GDP Price Index

A tool used to measure the nature and function of price changes in the economy, serving to distinguish between nominal and real economic values.

Nominal GDP

The value of Gross Domestic Product measured at current market prices, without adjustment for inflation.

Real GDP

The value of Gross Domestic Product adjusted for inflation, reflecting the actual volume of production.

Limitations of GDP

The specific constraints or weaknesses associated with using GDP as a measure of economic performance and well-being.