Economic growth (OCR A-Level Economics): Flashcards

Total value of output by factors of production in a period

Total output in current prices, not adjusted for inflation

Total output adjusted for inflation

Average level of GDP per head of population

An increase in actual GDP

Increase in productive capacity in an economy

Expansion, peak, contraction, trough

Two consecutive quarters of negative GDP growth

Real GDP accounts for inflation, Nominal does not

$\frac{GDP_{current} - GDP_{previous}}{GDP_{previous}} \times 100$

$\frac{GDP}{Population}$

Rightward shift in AD curve

Rightward shift of LRAS curve

Outward shift of PPF curve

Does not reflect distribution of income among residents