Economics Unti 4 Review

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What is GDP?

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Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country's borders in a specific time period.

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What are net exports?

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Net exports are the value of a country's total exports minus the value of its total imports.

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What is consumer spending?

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Consumer spending refers to the total amount of money spent by households on goods and services.

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What is government spending?

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Government spending is the total expenditure by the government on goods and services, including public services and infrastructure.

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What is investment spending?

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Investment spending is the purchase of goods that will be used in the future to create wealth, such as machinery, buildings, and equipment.

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What is cost-push inflation?

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Cost-push inflation occurs when the overall price levels rise due to increases in the cost of wages and raw materials.

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What is demand-pull inflation?

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Demand-pull inflation happens when the demand for goods and services exceeds their supply, leading to an increase in prices.

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What is included in GDP?

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GDP includes all final goods and services produced within a country, excluding intermediate goods and services.

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What is the difference between real GDP and nominal GDP?

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Real GDP is adjusted for inflation, while nominal GDP is not adjusted and reflects current prices.

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What is the significance of GDP growth?

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GDP growth indicates a healthy economy, showing that the economy is producing more goods and services over time.