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What is the study of aggregate economic activity called?

Macroeconomics

What are the short-term fluctuations of real GDP around its long-term trend called?

Business cycle

What are the three equivalent approaches to measuring GDP?

Income approach

Using the expenditure approach

what is the formula for calculating GDP?

If Consumption is $5

000

What does GNI (Gross National Income) measure that GDP does not?

Income earned by national factors of production

If a country's GDP is $10

000 and net income earned from abroad is $800

How do you calculate GDP per capita?

GDP divided by population

What is the difference between Nominal GDP and Real GDP?

Nominal GDP uses current prices; Real GDP is adjusted for inflation

If Nominal GDP is $12

000 and the GDP deflator is 120

What is the highest point in the business cycle called?

Peak

What is the phase of the business cycle characterized by falling real GDP?

Contraction

Name one limitation of using GDP as a measure of well-being.

It neglects income distribution / doesn't measure happiness / ignores sustainability

What does PPP (Purchasing Power Parity) adjust for when comparing countries?

Differences in price levels and cost of living

Name one alternative index to GDP that measures well-being.

Happy Planet Index / Happiness Index / OECD Better Life Index