+
3 Tutorials that teach Economic Growth (GDP)
Take your pick:
Economic Growth (GDP)

Economic Growth (GDP)

Author: Colton Cranston
Description:
This lesson covers economic growth.
(more)
See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

25 Sophia partners guarantee credit transfer.

221 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 20 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial

Notes on "Economic Growth (GDP)"

Key Terms


GDP

Gross Domestic Product; the sum of all final goods and services sold within a nation’s domestic borders; a measurement of economic activity


Resource Cost - Income Approach

Sum of the amount of resources used to produce goods and services, or sum of the income received from purchases of these resources.


Expenditure Approach

Sum of all final goods and services purchased in an economy; typically referenced as Y = C + I + G + (X – M); Y (GDP), C (consumer purchases), I (investment outlays), G (net government spending), X (exports), M (imports).


GDP Growth

The measure of change in GDP over time.


Nominal

The value of an economic variable such as GDP, inflation, or prices in the current period, does not reflect changes in purchasing power (price level) over time.


Real

The value of an economic variable such as GDP, inflation, or prices in the current period, adjusted for the change in purchasing power (price level) over time.


Interest Rate Effect

As interest rates fall, consumption increases due to the decrease in the cost of borrowing; as a result, purchases and business investment (Consumption, C, and investment, I, respectively) both increase.


Price

The cost of a good or service; nominal prices reflect the current or prevailing price for an item; real prices adjust for purchasing power variation over time.


Nominal GDP

The value of GDP including the impact of inflation


Real GDP

adjusts for inflation by restating nominal GDP in reference to a base year dollar value.