eco
What is nominal GDP?
Total production of NZ, in today’s money value
What is real GDP?
Total production of NZ, adjusted for inflation
What is real GDP per capita?
Total production of NZ, adjusted for inflation, per person
What is inflation?
Increase in the general price level
What is deflation?
Decrease in the general price level
What is disinflation?
Inflation but at a lower rate than the year before
the equation for Aggregate Demand
AD = C + I + G + (X – M)
things that could cause a decrease in Aggregate Supply
Decrease in population size
Decrease in productivity
Increase in costs of production
Increase in costs of imported raw materials
the 5 groups in the NZ economy according to the Circular Flow Model
Households
Producers
Financial institutions
Government
Overseas