Measurements of economic performance
- Created by: Lottie
- Created on: 13-03-12 16:29
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Economic growth
- measured using national income
- actual growth = increase in GDP- gross domestic product
- potential growth- increase in productive capacity of country
- real values have been ajusted to remove effects of inflation
- nominal- current Y without adjustments
- value- qaulity
- volume- quantity
How is GDP measured?
- sum of all goods & services produced in a year by a country
- sum of incomes/expenditure
- circular flow of income: injections & leakages
- increases = country is growing- implies…
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