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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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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Historically has the “decoupling” of world trade from GDP not lead to (or deepened) a recession?

The ECB speaks (somewhat euphemistically, in my opinion) of a "decoupling" of world trade from "activity" (i.e. GDP) in Q1 2019: Historically, has it been the case that such a "decoupling" can last, ...
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If a firm produced 100 pens with a market value of $1 each, but only 50 were sold, what is the value added to the GDP? [duplicate]

Is it 100 dollars or 50 dollars? I'm assuming it is $100 because GDP is the total market value of all final products. Is this correct?
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A hypothetical question on neutrality of money

Let's assume that we start with an economy producing two goods, A and B, with each priced $100. Each good is weighted using the same quantity, so CPI equals 100. Nominal wage is also 100 dollars. An ...
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Recapitalization of Banks

If a government decides to recapitalize banks then will that come under government expenditure and show up in GDP or will it be a transfer payment and stay outside the GDP? and why? In short, Is the ...
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What does it mean when we talk about “same basket” exactly for both GDP and CPI?

When we say about "the basket used for calculating the CPI is the same as the composition of GDP" What does it mean the "same basket"? Does it just mean the goods and service are the same but the ...
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Why growth of national income in current prices during inflation not measured in poor sections and poverty alleviation programs?

Here 1) dwindles means reduce, smaller. Here is my doubt: If inflation fluctuates how can we use the word 'dwindles', what it means here? 2) Why the growth rate during inflation not measured in poor ...
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Can't we measure the growth in the income levels of poor?

Inflation has been a challenging aspect of policymaking. In such situations growth in the income levels of the population living below the poverty level can never be measured accurately (due to ...
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Debt Held By The Public

Following off the back of this question on debt-to-GDP vs. debt held by public-to-GDP - Difference between "Debt Held by the Public" and "Total Public Debt Outstanding"?: So in ...
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Retained Earnings and the Income Approach to GDP calculation

One of the 3 approaches to calculating GDP is the so-called income approach, which states that total income (distributed as salary/wages, interest payments, and dividends) should equal total output. ...
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Performing good forecasts for the GDP

What forecasting models would you recommend to forecast the GDP? Through a quick research I have found that VEC, VAR, SVAR models are the most common. Are they though good forecasters? Or are they ...
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Differences between GVA and NVA?

I have studied these 1) Gross value added= value of output- intermediate consumption. 2) Net value added= gross value added- depreciation. But how could we say "Net value added = Gross value of output ...
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Sources of data for GDP and BoP accounts

When an American buys a coffee within the US, how does that 3.50 dollars worth of consumption expenditure make it's way to the US GDP account? Is the information obtained from the company's tax ...
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Consumer's side and producer's side

GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a ...
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About gross domestic product at factor cost

GDP at factor cost= Net value added + Depreciation. Here my question is why depreciation added to Net value added? I am confused here: Net value added = Gross value added - depreciation; so the above ...
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What is recession? Two quarters of -ve GDP or two quarters of slowing GDP?

I'm confused with the definition of recession. Is it two quarters of negative GDP growth , meaning GDP growing at -1% and -2% or GDP slowing to 2% and 1.5%.
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What does poorest country by population mean?

I understand poorest countries based on GDP but what does poorest countries by population mean? Below is the link to the information I was looking at. http://worldpopulationreview.com/countries/...
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Does consumption decrease directly lead to a shift in Aggregate Demand curve to the left?

Studying macroeconomics I began to wonder about the validity of a certain statement that I couldn't find a clear answer to: "When Consumption decreases, Aggregate Demand curve will shift to the left....
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How the Balassa-Samuelson affect real exchange rate?

According to standard Balassa-Samuelson effect, when the productivity increases in the tradable sector (GDP), price increase can be observed in non-tradable sector and this can lead to appreciation of ...
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Why does the US have public debt if they make more than that annually?

Probably a dumb question: I know next to nothing about economics and I'm just trying to make sense of what I'm trying to learn. So, I've been looking into GDP lately, trying to understand what it ...
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Generally speaking, shouldn't GDP roughly increase equivalent to population growth?

With all things being equal: shouldn't the GDP roughly increase equivalent to population growth (as a minimum, setting aside GDP increases resulting from technology, education, and all other factors). ...
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Origine of the GDP difference between WEO (IMF) and GEP (World Bank)

If one looks to the past world GDP growth from the "World Economic Outlook" of the International Monetary Fund and from the "Global Economic Prospect" of the World Bank one will systematically find 0....
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Best way to measure company size relative to world GDP

I'm working o a model where corporate revenue / world GDP is a dependent variable of some stuff (based on the model proposed in this paper: http://www.scielo.br/scielo.php?pid=S1807-76922009000200002&...