GDP Concepts

What are the three main methods used to calculate GDP?

• Resource approach, Distribution approach, Consumption approach

• Supply approach, Revenue approach, Investment approach

• Manufacturing approach, Savings approach, Demand approach

• Production approach, Income approach, Expenditure approach

Name the four components of GDP.

• export, import, savings, inflation

• consumption, investment, government spending, net exports

What is the difference between real GDP and nominal GDP?

• Real GDP is calculated quarterly, while nominal GDP is calculated annually.

• Real GDP accounts for inflation, while nominal GDP does not.

• Real GDP and nominal GDP are the same thing.

• Nominal GDP accounts for inflation, while real GDP does not.

How is GDP per capita calculated?

• GDP per capita = GDP / Population

• GDP per capita = GDP - Population

• GDP per capita = Population / GDP

• GDP per capita = GDP x Population

Define GDP growth rate and explain its significance.

• GDP growth rate is the percentage increase in a country's population from one year to another.

• GDP growth rate is the percentage increase in a country's Gross Domestic Product from one period to another, usually measured annually. It indicates the economic health and performance of a country.

• GDP growth rate is the total value of goods and services produced in a country over a period of time.

• GDP growth rate measures the inflation rate within a country.

What is the GDP deflator and how is it calculated?

• The GDP deflator is a measure of inflation in a specific sector of the economy.

• The GDP deflator is calculated by subtracting Real GDP from Nominal GDP.

• The GDP deflator is calculated as (Real GDP / Nominal GDP) * 100.

• The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100.

Which component of GDP includes government spending on goods and services?

• Public Investment

• Government Expenditure

• State Consumption

• Government Consumption

Explain the expenditure approach to calculating GDP.

• The expenditure approach to calculating GDP involves subtracting all the expenditures made on final goods and services within a country's borders.

• The expenditure approach to calculating GDP involves summing up all the expenditures made on intermediate goods and services within a country's borders.

• The expenditure approach to calculating GDP involves summing up all the expenditures made on final goods and services within a country's borders.

• The expenditure approach to calculating GDP involves considering only government expenditures on final goods and services within a country's borders.

How does the GDP growth rate impact a country's standard of living?

• Higher GDP growth rate can negatively impact a country's standard of living.

• Lower GDP growth rate can positively impact a country's standard of living.

• Higher GDP growth rate can positively impact a country's standard of living.

• Higher GDP growth rate has no impact on a country's standard of living.