GROSS DOMESTIC PRODUCT

​Gross Domestic Product
(GDP)

Multiple Choice

What is GDP?

• Gross Duties Peer

• Gross Domestic Product

• Get Duties Prior

• Gross Department Power

​A change in GDP over time illustrates growth

For economic growth to occur, it should change with population

Real GDP per capita measures such growth and the standard of living

​Economic Growth

​•Most important measure of wealth

•GDP is the dollar value of all FINAL goods and services produced within a country’s borders in a given year.

oFinal goods are those sold to consumers

oIntermediate goods are those used in the production process (not calculated)

​GDP (Gross Domestic Product)

​Nominal GDP is GDP measured in current prices

oDoes not always measure an increase in output

To measure growth from year to year, economists measure Real GDP

oReal GDP is measured by calculating GDP with constant price (accounts for inflation).

​Nominal vs. Real GDP

Multiple Choice

What type of GDP is calculated with the current year's prices?

• GDP per capita

• Nominal GDP

• Real GDP

Open Ended

In your opinion which European country has the highest GDP/capita