ECO440H5 Chapter Notes -International Trade, Remote Surgery, Comparative Advantage
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Appreciate: when a currency is rising relative to other currencies, it is appreciating in value. Balance of payments (bop): measures currency flows between countries. Constant dollars: correspond to values that have been adjusted for inflation, and so reflect the real or actual purchasing power. Current dollars: actual dollars spent, without adjustment for inflation. Depreciate: when a currency is falling relative to other currencies, it depreciating in value. Depression: sustained, long-term downturn in economic activity more severe than a recession. Gross domestic product (gdp): an indicator used to measure the output of an economy. It is the value of goods and services produced within one year in a country. Gdp is concerned with the output produced in a specific geographic location, regardless of the nationality of who produces it (ex. Gross national income (gni): measures the economic activities undertaken by citizens and firms of that country, regardless of where it takes place.