Economic Growth (Edexcel A-Level Economics A): Flashcards

Study of economic variables at aggregate/whole economy level

GDP based on current prices, not accounting for price changes

GDP volume estimate accounting for changing prices over time

Expansion in the productive capacity of the economy

Rate of growth of real GDP in a period

Total economic activity carried out in domestic economy

GDP plus net income from abroad

GDP fluctuates around underlying trend in regular pattern

$100 \times \frac{\text{New} - \text{Old}}{\text{Old}}$

Smoothing seasonal fluctuations to reveal underlying trend