ECO short summary

GDP:gross domestic product
formula:GDP=I(investment)+C(consumption)+G(government spending)+(x(exprot)-m(import))
IF X>M:SURPLUS
M>X:DEFICIT

FACTOR COST=GDP at market price-indirect tax+subsidy
NET GDP=GDP-depreciation


HDI:human development index
-real GDP per capita at PPP
real GDP is norminal GDP after allowing for inflation

-education/literacy

-life expectancy

PPP:purchasing power parity

problems with the basket of goods:
-over a period of time the contents of the basket will change
-we must allow for weighting
the relative importance of a price change for different products