Questions tagged [gdp]

Gross Domestic Product (GDP) is a flow measure of the value of finished goods and services produced within a country's borders in a specific time period. GDP is typically calculated on an annual basis.

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Which one of these sources best represents fiscal deficit data?

I'm currently recollecting data for an econometrics model I want to build later on with a panel data model. However, sometimes it is difficult to find certain information. For example, I want to ...
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Isn't recession is when there's an actual decrease and not just a less rapid growth?

I heard that for 2020, the global economic forecast is recession. The growth will be less than 2.5%. But isn't recession is when there's a decrease in GDP (for two consecutive quarters, as I recall), ...
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Does the US Bureau of Economic Analysis use the generic growth formula to calculate percent change of GDP?

My question is so basic, I'm embarrassed to ask it. (I study computational theory, not economics.) I'm looking at quarterly GDP numbers and growth rates. I've tried to arrive at the BEA's CPGDPAI ...
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what is potencial GDP?

The Wikipedia defines potencial GDP as "the total capacity of a nation to produce goods and services". If this definition is correct than the potential GDP can only occur when the unemployment rate is ...
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(AD-AS model) How is it possible for firms to spend less, but supply more at higher price level, assuming no increase of the SRAS?

According to the interest rate effect theory higher prices will lead to lower GDP demanded because firms will spend less due to loans being more expensive. It seems at odds with what the SRAS curve ...
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Will the services rendered by a worker from an unorganized sector be counted in GDP?

My guess is it won't be because the unorganized sector isn't captured in GDP? but I read somewhere it will be. not sure if I am wrong or it was an error in the answer key. please help
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Is there an “ideal” ratio of tax revenue to GDP? Or, at least, can I assume a higher ratio is better?

At the link below, you can see countries have a huge difference in ratios of tax revenue to GDP. Is it fair to assume that a higher ratio is better? Does raising a substantial portion of your GDP in ...
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Why do expectations of inflation decrease SRAS (Short Run Aggregate supply)?

If firms and workers expect the prices to rise, the short run aggregate supply will shift to the left to SRAS2. (https://www.albert.io/blog/what-shifts-aggregate-demand-and-supply-ap-macroeconomics-...
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China's GDP is seven times larger than during the SARS outbreak — what's the implication for China?

I have been compiling some figures to compare China's macro conditions in 2003 and 2019. Clearly, much has changed in nearly twenty years. In particular, a few indicators really stand out. For ...
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Is it better to calculate inflation rate using GDP deflater whether based year is the first year or last year of our data?

if we wanna calculate inflation rate for years 1997 and 1998, there are 2 ways, first is set our base-year 1997 and according to my data it will be 0.39 and if we set the base-year 1998 the rate will ...
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Equilibrium in currency devaluation?

In export oriented Economy, we often come across currency devaluation as means to boost exports. As per my understanding (please correct me if I am wrong), currency devaluation will immediately bring ...
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Shouldn't national Stock Indices proportional to GDP of the country?

I was looking at Japan: Japan's GDP trajectory and Nikkei 225. It seems from 2011 - 2015 the GDP contracted but the Nikkei has gone up. Would there be a good explanation for this ?
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If a Chinese person wants to buy an iPhone or any international goods, which GDP per capita would be a better indicator?

Which GDP per capita of a Chinese citizen would better reflect their affordability- Nominal GDP per capita or PPP GDP per capita of China? My question is would PPP would matter much in case of buying ...
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Areas of Europe with more women than men have higher GDP and lower unemployment. Why might this be? [closed]

Using Eurostat data I've found that regions of Europe with more women than men (i.e. female biased sex ratio) have higher GDP and lower unemployment than areas with male biased sex ratios. any idea ...
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Understanding GDP vs Real GDP

I am totally new to Economics. I have issues understanding GDP and real GDP. I have listed 3 statements below, can someone tell me if those makes sense ? GDP Gross Domestic Product is used to get an ...
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Would a zero-growth economy with zero-growth population still have the same GDP?

If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
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Why is it important to look at all three different ways when looking at the macroeconomy of a country?

we have and use three different ways of deriving the Gross Domestic Product namely Output, Income, and Expenditure (or final consumption) methods but why is it important to view the GDP from all three ...
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Double counting because of gross mixed income

I was learning the income method of calculating GDP when I stumbled upon this doubt. As per the definition given in the book GDP = GDI (Gross Domestic Income) = Compensation of employees + Gross ...
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Are my conclusions correct in context of these examples of forceful extraction of money?

There are two examples, one for a bandit, the another one is for the government. Suppose we have a simple economy, a bandit and a teacher. The teacher can teach the bandit, but the bandit can't offer ...
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What would happen to the world GDP if we run out of minerals to mine but not of sources of energy?

I was thinking about how the depletion of minerals (metals and all material we mine from the Earth) will affect the GDP of the world. I read somewhere that at the current extraction rate, we will run ...
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Why isn't PPP given due importance?

A unit of money in Country X may buy far more goods in Country Y than in the former. But Country X prides in calling itself a larger economy and a more prosperous entity. As money is just a social ...
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If you charge a single (indirect) tax rate, x% on all goods and services in a country, will you get x% back as tax revenues?

Assuming 100% compliance and no leakages, will charging a single tax rate of, say, 10% give us back 10% of the GDP back as tax revenues? What could these leakages be in real life that reduce this?
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GDP(Expenditure view of GDP): /Why aren't investments categorized as non-final goods?

My understanding is that consumption = consumption of final goods = whatever consumers buy from companies (with an adjustment for export-import-process + maybe housing is slightly different (not ...
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Does stagflation lead to redistribution of wealth?

Suppose there is inflation in our country, but we take a short term, thus some prices are sticky and there is non-positive "growth" of the real GDP. In other words, we experience stagflation. If I ...
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Do I understand correctly that taxation-based government expenditures allow GDP to grow?

Suppose (it's an example) GDP= $1 000 000, Marginal Propencity to Consume(MPC)=0.25, that borrowing money is an absolute taboo for our government and that said government wants to increase GDP. What ...
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Stock market in india

While economy in india is experiencing a slowdown, the stock markets are having record highs. can someone explain this dichotomy in simple language ?
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Which one of these intepretations of belonging of a factor of production is correct in context of calculating “income of our citizens abroad”?

NFFI can be calculated as income of foreigners here MINUS income of our citizens/corporations abroad. As far as I understand, it's assumed that our citizens earn income by using OUR factors of ...
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Would GDP for a pure endowment economy be equal to zero?

(Am I correct?) As far as I understand, a pure endowment economy means that good just appears in the country without any labor involved in producing them. Like maybe given country lives entirely from ...
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Where are expenditures of non-government non-proft organizations in the expedienture approach of calculating GDP?

We have 3 categories of spenders: 1.Households (except for buying first-hands houses, all their expenditures are counted as consumption) 2.Firms (all their expedintures are counted as investments) ...
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Do I make correct conclusions about international trade (and ways to increase GDP) from the expedenture approach formula for GDP?

(Please correct me if my reasoning is wrong somewhere) Net Exports is a part of GDP and consequently its increase or a decrease also causes GDP to increase or decrease, assuming everything else stays ...
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Why do we add Net Foreign Factor Income instead of substracting it while calculating GDP?

(It's assumed that we use the income method.) GDP is supposed to include all incomes received on territory of given country, no matter if receivers of income are citizens or not. So incomes of ...
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When calculating GDP using the income approach how do we make sure that we count only wealth produced in given year?

As far as I understand, when we calculate GDP we want to estimate wealth produced during given year in given country. But it seems like it will be problematic when using the income approach (the ...
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Why don't we count incomes of the government from taxation when calculating GDP using the income approach?

According to the income approach GDP is equal to wages + rent + interest + profit, income from taxes isn't included. The government provides people and organizations with public goods (like roads and ...
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Where to find GDP for sub-sectors of a Nation?

I was recently doing a presentation for Economics Class in which I wanted to break down the GDP of the UAE by Emirate. I could not find anything on the internet about this, although a quick google ...
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Basic question on S=I

Consider the identity: $$ Y=C+I+G+X-M $$ where $Y$ is defined either as value-added output, or income, or total expenditure. Now, consider private individuals, who decide to save money, as opposed to ...
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Possible “debt-to-…” ratio indicators for debt-to-economic growth relationship?

Suppose we are interested in the relationship between public or external debt and economic growth. One can look at the debt-to-GDP ratio or debt-to-export ratio. What may be other possible "debt-...
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Is there a relationship between the elevation/altitude of a city and its GDP?

A year or two ago, I recall watching a YouTube video that looked at the GDP of various cities and argued that there was a weak positive correlation between their elevation and their GDP. I can't find ...
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What does the GNI/GDP ratio of a country signify about?

What does it mean, if the GNI of a country is lower than the GDP
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How to calculate Real GDP from quarterly change

How do I calcualte a countries Real GDP from QoQ changes? Example - Australia 2018 - Real GDP was 1432195178668.32 $Billion 2019 Q1 was 0.5% 2019 Q2 was 0.6% 2019 Q3 was 0.4% How do I calculate ...
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Does GDP Income Approach hold?

Let me introduce my question with an example. There is a company producing cars. $20$ cars are produced, with a value market of $20000u$. $\textrm{GDP} = 20\cdot20000u = 400000u$. Assume that the ...
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Dimensional analysis of GDP

The GDP is sometimes given by $$ GDP=P\cdot h\cdot e \cdot F $$ Where $P$ is the Productivity, $h$ is the number of hours worked, $e$ is the employment rate and $F$ is the size of the labor force. ...
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Value Added Approach of GDP calculation

Suppose I sell bread loaf for 20 dollars, the cost of raw material like oil,flour,electricity.... is 13 dollar, I pay 2 dollars to my workers, 1 dollar to transportation company to transport it to ...
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How do I calculate the services sector as a percentage of GDP?

Could anyone explain how I should calculate the share of services sector as a percentage of GDP? I get the numbers for US GDP from Table 3: https://www.bea.gov/system/files/2019-10/gdp3q19_adv_0.pdf ...
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What was the GDP PPP per capita of Equatorial Guinea in 2017? (very different figures according to different sources)

This list List of countries by GDP PPP per capita gives Equatorial Guinea a GDP per capita of 34,900 according to CIA and a GDP per capita of 24,817 according to World Bank in 2017. The differences ...
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How much do the concepts and methodologies of GDP, CPI, PPP overlap?

Indicators of greatest importance in macro-economics are: the gross domestic product (GDP → comparison and growth of wealth) the consumer price index (CPI → inflation rate) purchasing power parity (...
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Congruence of GDP as calculated by production and by consumption

Here I've read the following (translated by Google) GDP can be calculated in two ways: firstly, by origin, that is, by estimating the value of all goods and services produced, and secondly by ...
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Why salaries counted under Government expenditure in GDP

In the expenditure approach of GDP calculation, why are government employee's salary counted under Government approach while for private firms, we don't count salaries. I am unable to understand if ...
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calculate magnitude of a recession

I'm doing an exercise from Blanchard Macroeconomics where I'm, apart from other things, asked to calculate the severity of recessions in the US since 1960. The data on the webpage that's referenced is ...
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Measuring economic growth in GDP (in USD) vs Real GDP (domestic currency)

I've noticed that a lot of data online seems to measure a non-US country in USD. This seems odd to me, because doesn't that mean that US fiscal/monetary policies, politics, and economics would affect ...
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GDP Income Approach

On the economics textbook it is written that GDP Income Approach can be calculated as: [ Compensation of Employees + Operating Surplus + Consumption of Fixed Capital + Tax on Production and Imports - ...

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