Flashcard Definition
Measures the value of activity within an economy in a given timeframe.
Block Type
Flashcard
The Fraser of Allander have a handy GDP guide to understand this concept in more detail.
A Guide to Scottish GDP | FAI
The size of Scotland's economy is frequently used as an indicator of how well Scotland does compared to the rest of the UK. GDP often features in the news, for example in the current climate, where both the UK and Scotland have officially entered a recession following two consecutive quarters of negative GDP growth .
fraserofallander.org
The most common measure of economic activity in a given geographical area (city, region, country, or even the entire world) is its Gross Domestic Product (GDP).
GDP measures the value of activity within an economy in a given timeframe. There are three approaches to measure this:
- Output approach;
- Expenditure approach; and,
- Income approach
In theory, the three approaches to measurement should lead to the same answer, giving us GDP.