MYTUTOR SUBJECT ANSWERS

406 views

What is GDP and is it a useful indicator to measure the standard of living?

1) GDP- is the value of all goods and services produced by the economy in a given period (year, quarter...)

Quantity of goods x Price of goods

Nominal GDP- measures values using current prices. (Prices of G&S increase & Quantitiy of G&S increase)

Real GDP- measures values using prices of a base year -value they would have been in the base year- (Prices constant, only quantity increases)

Therefore- Nominal GDP > Real GDP -due to inflation

(Extra Time- Explain Local currency GDP vs PPP GDP)

2) GDP reflects a better standard of living- higher consumption)

GDP looks at demand side- households, govt, firms & forerigners

GDP = C+I+G+X-M

Investment goods- buildings, plants, capital equipment

Sales of used goods, or black market activity not included in GDP.

Distinction in quality & quantity growth, no accounting for depletion/pollution, inequality

Alternatives- HDI (GDP, health, education), LSE growth commission- median household disposable income

Mohammed M. A Level Economics tutor, A Level Maths tutor, GCSE Maths ...

9 months ago

Answered by Mohammed, who has applied to tutor A Level Economics with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

57 SUBJECT SPECIALISTS

£36 /hr

Joe B.

Degree: Mathematics G100 (Bachelors) - Bath University

Subjects offered:Economics, Maths+ 4 more

Economics
Maths
Further Mathematics
.STEP.
.MAT.
-Personal Statements-

“About Me Hi, I'm Joe, a first year mathematics student from Luton studying at Bath University. I am an accomplished mathematician and economist, having achieved A* grades in A Level Maths, Further Maths and Economics in June 2016. As ...”

£24 /hr

Anahita G.

Degree: Maths and Economics (Bachelors) - York University

Subjects offered:Economics, Science+ 3 more

Economics
Science
Maths
Chemistry
.TSA. Oxford.

“I am a maths and economics student at the University of York. I have always loved logical and analytical subjects, for example Maths and the Sciences. I also particularly enjoy economics as there are countless ways to analyse and conc...”

£20 /hr

Evelin H.

Degree: Economics (Bachelors) - Durham University

Subjects offered:Economics, Maths+ 1 more

Economics
Maths
-Personal Statements-

“Hi! I’m Evelin, an undergraduate at Durham University. Having been a tutor before, I know how hard it can be to keep up with all the work. So why do it alone?”

About the author

£20 /hr

Mohammed M.

Degree: Philosophy Politics and Economics (Bachelors) - LSE University

Subjects offered:Economics, Maths+ 1 more

Economics
Maths
History

“Top tutor from the renowned Russell university group, ready to help you improve your grades.”

MyTutor guarantee

You may also like...

Other A Level Economics questions

What is inflation and how does it come from supply or demand side?

What characteristics might a perfectly competitive market have? Choose 3 (6 marks)

Tax incidence: how is a tax borne between consumers and producers?

What are business cycles?

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok