Course review
Review each learning objective in this topic, then open its concept explanation or question set.
Learning objective
• National income accounting measures economic activity • Income, output, and expenditure approaches are equivalent in the circular flow model • Diagram: circular flow of income showing decision-makers, leakages, and injections
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Nominal GDP measures national output within a country • Nominal GNI adjusts GDP for net income flows with the rest of the world • Calculation: nominal GDP using the expenditure approach • Calculation: nominal GNI from data
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Real GDP and real GNI adjust for price changes • Per capita measures divide real GDP or real GNI by population • Purchasing power parity (PPP) adjusted measures improve international comparisons • Calculation: real GDP and real GNI using a price deflator • Calculation: real GDP per capita and real GNI per capita
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• The business cycle shows short-term fluctuations around a long-term growth trend or potential output • Diagram: business cycle with short-term fluctuations and long-term growth trend
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• GDP and GNI statistics have limits when measuring economic well-being • National income data can be used for comparisons over time and between countries • Alternative well-being measures include the OECD Better Life Index, Happiness Index, and Happy Planet Index
Start with the concept explanation, then practise to create mastery evidence.