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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How can the GDP's growth rate be positive, when the GDP decreases?

I have question about following charts in Mozambique. Here is GDP of Mozambique in 2010-2016 - https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2019&locations=MZ&start=2008. You can ...
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What percent of the United States' GDP actually contributes to total wealth?

For activities like food production or infrastructure maintenance, which count towards GDP, the wealth generated is simply part of the process of the nation sustaining itself, and so after all is said ...
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GDP of domestic and foreign economic activities of a country

Is there an indicator which shows how much GDP of a country is generated by domestic economic activities (e.g. business between food production in Germany and agriculture in Germany) and how much GDP ...
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Does GDP typically refer to Real GDP or Nominal GDP?

I previously believed GDP typically refers to nominal and real GDP is specified explicitly. However, in data sources like this, does it refer to Real GDP growth or Nominal GDP growth? Real GDP growth ...
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GDP per Capita in Panel Data: Must the base year be the same for all cross-sections?

I'm trying to run a small project using time series in panel data. One of the variables used is the GDP per capita for a few countries (the countries are the cross-sections). Is there a problem if the ...
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Does real GDP control for changing preferences?

This claims that real gdp does not account for changing preferences. However, if preferences were to change for sneakers and subsequently pushes the price up, won't this be reflected in the changed ...
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How to find US total debt?

Sorry i'm not really an economist but I don't know where else to ask. I'm reading Ray Dalio's Big Debt Crises and he has several graphs for total US debt burdens https://imgur.com/a/tPX3LuH where it's ...
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How do you stop Hyperinflation in a Nation?

In history, I learned that the Weimar Republic had hyperinflation as a consequence of leading and striving war during World War I and placed a new currency named German Rentenmark which would be about ...
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1answer
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Treatment of natural disasters and wars in consumption of fixed capital

Assets destroyed by natural disasters and wars are not included in consumption of fixed capital (CFC) in the US NIPA or the UN SNA. Suppose though that the US decided to start including such asset ...
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Is investment in real estate a real investment?

In the book The Financial Crisis and the Free Market Cure in chapter 3 author said that investment in real estate is not really investment. It is jobs that create ...
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What is the public spending / government expenditure share of GDP in Europe?

I have found data that seems to be contradicting: statista gives public spending at country level between 40% and 60%, but eurostat gives an aggregate figure of about 20%, as shown in the following ...
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Why did non-seasonally adjusted gdp usually drops on Q4 and Q1?

Yesterday, i stumble upon some of my country macroeconomic data, and i found some interesting pattern on quarter-on-quarter gdp growth, almost every Q4 and Q1 has a negative growth. After checking ...
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Does salary contribute to GDP under the expenditure approach?

The question really confuses me. On one hand, we can consider the wages as purchasing services from employees. On the other hand, the salary is also part of the cost of the products, thus it isn't &...
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What are the consequences of having negative GDP growth? [closed]

Many countries are facing negative GDP growth due to coronavirus. I am curious to know what will the significant consequences of having negative economic growth?
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What is it called when there is no personal increase of wealth but GDP increases because of mutual sales?

In a hypothetical situation, every person produces some product but instead of consuming it sells it to another person. This situation would increase the GDP whereas self-consumption doesn't. Say, ...
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Is personal produce counted in GDP?

Good day. And sorry if it's a stupid question. I came across a question on another q&a site earlier today. It was about a hypothetical scenario. The question was if everyone in a nation becomes ...
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Does national debt and its repayment assume population increase?

I assume that the repayment of an increasing national debt depends on an increasing GDP. And increasing GDP, in turn, depends mutatis mutandis on increasing population. So an increase in national ...
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What does annualised GDP shrinkage of 75% and growth of 54.6% mean?

According to Business Today (India), these are the latest figures for 2020 September 3 for GDP change in World's largest economies. In simple terms, what do GDP shrinkage of 75% and growth of 54.6% ...
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Why do the GDP baskets of different countries have different percentages?

Why might the housing part of the US GDP basket 40% of the basket, but only 17% of China's?
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Theoretical economy calculation of closed country

Is there any well-known theoretical solution to the problem as described below? I am considering an ideal very simplified case. There is a closed country/community of N people. All people are working. ...
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Is there a per country estimation of the GDP drop due to COVID?

I've been looking around for some per-country estimation of the expected GDP drop due to the COVID pandemic. I've found this answer in this site but it only mentions a few countries. I understand not ...
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How does FRED Quarterly Real Gross Domestic Product and USA GDP growth rate match?

https://fred.stlouisfed.org/series/ND000334Q From this not seasonally adjusted data, Q2 GDP merely dropped 1-4305/4674=8% QoQ? What makes this number to be so different from the 32.9% decline they ...
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Why is FDI included in GDP computation but not in GNP? Similarly why is FPI included in GNP computation?

I know the difference between GDP and GNP is that the former is confined to domestic borders and the latter to nationals across the world. I also know that FPI is shorter duration and more volatile ...
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Why is the Stock Market Cap / GDP ratio on FRED well out of date?

FRED posts the Buffet Ratio here: https://fred.stlouisfed.org/series/DDDM01USA156NWDB But it ends in 2017, anyone know why?
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What types services count as intermediary consumption when calculating GDP?

What types of services count as intermediary consumption when calculating GDP? I'm not quite sure where the line is drawn. The examples below try to illustrate my confusion. Say a supermarket provider ...
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1answer
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Does levying a new tax on production increase GDP?

Consider a society with no taxes on (e.g) commercial land ownership. One day the government impose a small tax on land owned by the foresting industries. I would assume that prices on goods produced ...
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Do circular invoices count in GDP?

I'm trying to understand GDP and what it means. Say that there are two US software companies, Foo Inc and Bar Inc. Foo Inc produces software and charges Bar \$1 million for its usage, while Bar Inc ...
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Country GDP vs Exports - why such a big difference?

I discovered that country ranking by GDP and Exports are very different. Largest by GDP ...
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Why does a positive output gap imply workers working overtime?

From Investopedia, "A positive output gap indicates a high demand for goods and services in an economy, which might be considered beneficial for an economy. However, the effect of excessively ...
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1answer
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MNCs income greater than origin GDP

Can anyone explain why the net income of some MNCs overwhelmingly surpass the GDP of countries/regions, where their sources of labor/raw materials are located? Accompanying references are welcome. P.S....
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Why couldn't India grow its economy as fast as China did?

I was listening to this debate on India vs China. Professor Dr. Kishore Mahbubani posed this question (watch from 17:21). Let us see the following graph: India has a population comparable to China. ...
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GFCF/GPDI in Real GDP Calculations

I'm trying to understand how GPDI / GFCF are used in the real GDP calculations (when compared to net investment). In both the US / Denmark, the real GDP numbers seem to directly GPDI / GFCF without ...
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63 views

Second-hand products in GDP

I am aware that secondhand goods are not counted in GDP due to double counting issues, but I want to ask about a specific case of transaction of second-hand goods. For instance, what if a student ...
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1answer
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GDP calculation on selling house at a profit

This question may appear to be naive, however, since I am having problems understanding it, I had to resort to ask it here. How will the sale of an old house at a profit affect the GDP? Let us say I ...
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Why GDP series always has an unit root problem?

In one of the lecture slides of class that I am currently taking our professor mentioned that when it comes to the GDP is it safe to always assume it has unit root and testing for it is just ...
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Increase in Debt / GDP positive or negative for currency?

When a nation-state and/or monetary union increase it's debt to GDP ratio. Is this a net positive or negative for its currency?
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What does 'Health spending as a share of GDP' mean?

I am watching a video essay talking about healthcare spending in different countries and one of the first graphs shown was titled: 'Health spending as a share of GDP'. After doing some reading, I ...
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An easy GDP growth question

A woman pays her gardener £60 per year and later married him. The gardener continues to work in the garden but unpaid. The woman earns £1000 before and after the marriage. Statement: the marriage ...
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Does Direct Benefit Transfers make an economy poorer?

Printing money and giving to the poor causes inflation. Increases demand and hikes prices. This is basically certain. But on the contrary, a paper titled Debunking the Stereotype of the Lazy Welfare ...
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Why do we need to “get the economy moving again”?

Sorry I have no background in economics but as a computer programmer, I specialise in building models out of simple math and logic, so I hope we can speak the same language without having to get into ...
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How do the factors of production map to the GDP identity?

How do the 4 factors of production (nature / capital / labour/ entrepr.) map to the GDP components in: $$Y=C+I+G+(X-M)$$ To me it seems that all factors map to all GDP components, simply because it's ...
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What is data trapezoid form?

For one of our class project we are required to do the following: Download U.S. real GDP in data trapezoid form (vintages) I tried to search online for what does the data in trapezoid form means ...
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GDP Discrepancies

I'm trying to practice reading economic data from FRED and BEA websites, but they seem to be providing conflicting data that I cannot understand at all. For example, looking at Real GDP percentage ...
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Understanding GDP Chart

When I Google "GDP of 1950", I get ~$300 Billion. Looking at the graph @ https://fred.stlouisfed.org/series/GDP . I see Q1 280 billion Q2 290 billion Q3 308 billion Q4 319 billion My questions: ...
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What is the effect on GDP when foreigners buy lots of domestic bonds?

I am trying to figure out the effect on GDP of foreigners buying lots of domestic bonds. From what I understand, when foreigners buy lots of domestic bonds: They need to convert their foreign ...
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Are the EU funds coming from EU citizen's taxes as well?

I was trying to understand how the EU is funded using their official website, but my limited understanding of economy makes it very hard to understand the money pathways from a single unit (the ...
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What is the best measure for the world's economic cycle?

I'm trying to make a graph that shows how the return of major assets (S&P 500 index, % of 3Y T-notes, oil, gold, etc) move along with the world's expansion& recession cycle. I looked into ...
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Bananas and oranges in communist countries

This is a question I wanted to ask for a long time. If you check the GDP or East Germany in 1989 and compare it to that of banana-producing countries you can see: ...
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Why does the answer not include increased negative unplanned stock investment?

I will focus on the event "c": The answer for "c" is following: A sharp increase in the rate of real GDP growth leads to a higher level of planned investment spending by producers, according to ...
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How to solve duplicate couples error in unbalanced dataset

I am trying to perform a regression on unbalanced panel data in R. In order to set the data as panel data, I use the following code: ...

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