Measuring the Economy

Flashcards about measuring the size of the economy with GDP and GNP

What does Gross National Product (GNP) measure?

The dollar value of all final goods and services produced by a nation anywhere in the world.

What does Gross Domestic Product (GDP) show about the nation's economy?

The market value of all final goods and services produced within a country during a given period of time, measuring the amount of money brought into a nation in a single year through the production of that nation's goods & services.

What are economic indicators used for?

To help economists judge the health of an economy.

What are the four parts of GDP?

The market value of all final goods and services, produced within a country, during a given period of time (one year).

What are the four categories estimated to calculate GDP using the Expenditure Approach?

Consumer goods, Business goods, Government goods/services, and Net exports (NX).

What is NX?

Net exports (what we exported - what we imported).