ECN102 World Economy - Week 2

The total value of goods and services produced within a country's borders in a given time period.

The total income earned by all residents of a country, regardless of where it was earned.

The difference between GNI and GDP. It represents income earned by residents of a country from their investments and work abroad.

A measure of economic output adjusted for inflation. It shows the real growth or decline of an economy.

A measure of economic output not adjusted for inflation. It shows the nominal value of goods and services produced.

A calculation of GDP per capita. It divides the total GDP by the total population.

An exchange rate that takes into account the difference in purchasing power between currencies.

A measure of economic well-being that takes into account the distribution of income in a country.

The total value of all goods and services produced in an economy during a specific period.

Value added is the difference between the value of a good or service's output and the cost of inputs used.

A method of calculating GDP by summing the value added by each sector in the economy.

A method of calculating GDP by summing all the incomes generated by production activity.

A method of calculating GDP by summing the expenditure on final goods and services within the economy.

Goods or services that are used as inputs in the production of other goods or services.

The problem of counting the value of intermediate goods twice when calculating GDP.

Using the prices of a base year to calculate the value of GDP in other years, providing a measure of real economic growth.

A measure of economic output using current prices, reflecting changes in both production and prices.

A sustained increase in the overall price level.

The rate at which one currency can be exchanged for another on the foreign exchange market.

A conversion factor that controls for price level differences between countries, allowing for a more accurate comparison of purchasing power.

The difference between Nominal GDP and Real GDP, representing the change in prices over time.

The process of converting a country's GDP from its local currency to a common currency for international comparisons.

The price of a good in one country converted to the currency of another country using the PPP exchange rate.

A statistical measure of the relative prices of goods and services in two different countries, using a reference basket of goods.

A reference basket of goods and services used to compare the purchasing power of different currencies.

When GDP is calculated using the PPP exchange rate, it removes price level differences, providing a more accurate comparison of output.

The relationship between the PPP exchange rate and the actual market exchange rate.

Using the market exchange rate to convert GDP, it reflects differences in both price and quantity.

Using the actual exchange rate to convert prices from local currency to US dollars.

The total value of all goods and services produced in an economy during a specific period, adjusted for purchasing power differences. This provides a more accurate picture of the size and relative wealth of an economy by taking into account the cost of living in different countries.

The difference between a country's Gross National Income (GNI) and its Gross Domestic Product (GDP). It represents the income earned by residents of a country from their investments and work abroad, for instance, profits from foreign investments or wages earned by citizens working in other countries.

A situation where people or economies are trapped in poverty due to lack of access to resources, opportunities, education, or healthcare. This can lead to intergenerational poverty and restrict economic growth.