Module 11

GDP is a measure of the ____________________ of the economy , providing a scale against which to compare the economic performance of other years .

Part of the increase in the value of GDP over time represents increases in the ____________________ of goods and services rather than an increase in ____________________ .

To measure actual changes in aggregate output , economists use a modified version of GDP that is adjusted for ____________________ changes , known as ____________________ GDP .

GDP provides a good way to compare the size of different economies , but it's not a good measure of the economy's growth over ____________________ .

Even if an economy's output doesn't change , GDP will go up if the ____________________ of the goods and services the economy produces increase .

GDP can fall either because the economy is producing less or because ____________________ have fallen .

An accurate measure of ____________________ ____________________ is needed .

Aggregate output is the ____________________ quantity of final goods and service produced within an economy .

____________________ GDP is a measure of aggregate output .

By tracking real GDP over time , economists avoid the problem of changes in ____________________ distorting the value of changes in production .

To estimate the true increase in aggregate output , economists have to determine how much GDP would have gone up if ____________________ had not changed .

To find aggregate output , economists use the ____________________ from year 2 and the ____________________ from year 1 .

Real GDP is the total value of all final goods and services produced in the economy during a year , calculated as if prices had stayed ____________________ at the level of some ____________________ year .

____________________ GDP removes the effect of price changes .

Nominal GDP is the total value of all final goods and services produced in the economy during a ____________________ year , calculated at ____________________ prices .

____________________ GDP can overstate or understate growth in output over time .

By comparing output using a common set of prices , economists are able to focus solely on changes in the quantity of output by ____________________ the influence of changes in prices .

Other things equal , a country with a larger population will have a higher GDP simply because there are more people ____________________ .

To eliminate the effect of differences in ____________________ size , economists use GDP per capita .

GDP per capita is GDP ____________________ by the size of the population .

GDP per capita is the ____________________ GDP per person .

Real GDP per capita is the average real GDP per ____________________ .

Real GDP per capita can be a useful measure of ____________________ ____________________ .

Real GDP per capita has well - known ____________________ as a measure of a country's living standards .

Real GDP does not ____________________ many of the things that contribute to happiness , such as leisure time , volunteerism , housework , and natural beauty .

Real GDP increases with ____________________ on some things that make people unhappy , including disease , divorce , crime , and natural disasters .

Real GDP per capita corresponds to the value of ____________________ in a country .

A country with a relatively high GDP per capita can ____________________ relatively high expenditures on health and education , however , real GDP per capita does not indicate how income is ____________________ .