GDP

Front

What is GDP?

Back

Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a specific time period, usually a year.

Front

Does buying a new watch count in GDP?

Back

Yes, buying a new watch counts in GDP because it is a purchase of a new good.

Front

Does government spending count in GDP?

Back

Yes, government spending is included in GDP as it reflects the government's contribution to the economy.

Front

What is Nominal GDP?

Back

Nominal GDP is the measure of a country's economic output that is not adjusted for inflation, calculated using current year prices.

Front

What is Real GDP?

Back

Real GDP is the measure of a country's economic output that is adjusted for inflation, reflecting the true value of goods and services.

Front

What is the difference between Nominal GDP and Real GDP?

Back

Nominal GDP uses current prices, while Real GDP adjusts for inflation to provide a more accurate economic picture.

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Are used goods included in GDP?

Back

No, used goods are not included in GDP because they were counted in GDP when they were first sold as new.

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What does GDP per capita measure?

Back

GDP per capita measures the average economic output per person, calculated by dividing GDP by the population.

Front

What is the formula for calculating GDP?

Back

GDP = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports.

Front

What are final goods?

Back

Final goods are products that have completed the production process and are ready for sale to consumers.