★ Must-know
📌 Real GDP is measured at constant prices and captures changes in quantities, whereas nominal GDP is measured at current prices and can increase because of higher prices.
Further detail
1. Which description best defines economic growth?
2. What does gross domestic product measure?
3. A country’s nominal GDP rises while its real GDP remains unchanged; what most likely explains this result?
What is economic growth?
A sustained increase in a country's production and wealth over time.
What does gross domestic product (GDP) sum up?
Gross value added by resident units plus taxes on products minus subsidies.
How is real GDP measured?
At constant prices capturing quantity changes.
How is nominal GDP measured?
At current prices and can rise due to price increases.
What are factors of production?
All inputs necessary to produce goods or services and create value added.
What causes extensive growth in production?
Using larger quantities of factors of production.
It covers the core concepts of Sources and Challenges of Economic Growth, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.
Read the full study guide →The practice quiz has 31 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.
Take the quiz (31 questions) →There are 51 flashcards on Sources and Challenges of Economic Growth, with a question on the front and the answer on the back. Try to recall each answer before you flip, and let spaced repetition bring back the ones you miss.
See all 51 flashcards →Upload a PDF or paste your notes. Revizly writes a study guide, a practice quiz and flashcards in about a minute.