Economic Growth and GDP Analysis Quiz

GDP per capita measures the average economic output per person.

GDP stands for Gross Domestic Product, representing the total monetary value of all goods and services produced within a country's borders.

Imports are not included in GDP calculations as they represent goods and services produced abroad.

GDP is calculated by summing up consumption, investment, government spending, and net exports.

GDP does not reflect how income is distributed among residents of a country, which can affect overall welfare.

As GDP grows, businesses expand, leading to more job opportunities and consequently lower unemployment rates.

Intermediate goods are used in the production process and are not sold directly to consumers, like steel used by manufacturers.

Economic growth refers to the sustained increase in the production of goods and services within an economy over time.

Real GDP accounts for inflation, providing a more accurate measure of economic output over time, while nominal GDP does not adjust for inflation.

Government regulations can impede economic growth by creating barriers to entry, stifling innovation, and increasing business costs.

The GDP deflator measures the average level of prices in an economy relative to a base year, reflecting inflation or deflation.

Capital formation occurs when resources are allocated to the production of capital goods, like machinery, which enhance future production capacity.