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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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Using a Cobb-Douglas Function to find GDP [on hold]

I have the following equation: $$Y = E(L^A)T(K^{1-A})(N^2)$$ We've been given the value of Y = 6037, and the "total earning of Labour" = 278.665, and have been asked to find the value of A. I can't ...
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GDP (Is this a part of GDP Calculation)?

The GDP Calculation is for US. If a Canadian company decides to change from a US supplier to a Canadian supplier, will that change the GDP? I thought it would - as that it would reduce exports - but ...
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Will BRICS countries be the leading innovation countries 20 years from now? [on hold]

I wonder about the question given in the title. What could be arguments against this statement? Considering China and Russia: Both countries have an authoritarian political system. I claim - and ...
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GDP calculation doubt [on hold]

An economy has the following sectors: private households, government, grape producers and wine producers. The government levies a sales tax (VAT) on both grape and wine of 20%. The grape producers pay ...
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Evolution of GDP to debt ratio

Is it possible for an entity (say a state, e.g. USA) to keep a constant GDP/debt ratio with a monotonically increasing debt. I should probably mention that I am not an economist (physics and c.s ...
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How can intermediate goods and final goods be differentiated?

The calculation of GDP(using expenditures) is: $C+I+G+Xn$, where we calculate the spending on final goods and services within a country. However, how exactly are final and intermediate goods ...
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How is the GDP growing when nothing else seems to be?

We've had strong GDP growth all three quarters this year. To me, that would indicate that, in at least some areas, we should be seeing growth. However, from my extremely ignorant armchair, it doesn't ...
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Data Set of Bourguignon and Morrison 2002 AER

This question is about the following paper: F. Bourguignon and C. Morrison "Inequality among World Citizens: 1820-1992", American Economic Review, Vol. 92, No. 4. (Sep., 2002), pp. 727-744. On p.730,...
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Unsure how to go about computing GDP for the following problem

I came across this question where the GDP for the years 1995-1997 is given. Then I was asked to compute the growth rate every year which I'm aware of.The next question was to compute the average which ...
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why is I included as part of GDP?

GDP = C + I + G + (X-M) If GDP is supposed to count only final goods and services, why include I? Eg if build public roads, can count as G; if build factory, can count when factory produces goods and ...
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How to extrapolate nominal GDP figures from year to another?

If I have data for nominal GDP data in local currency for several countries for a given year, how can I extrapolate the nominal GDP forward? Give that nominal GDP = quantities x prices, could I just ...
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'Taxes less subsidies' included in income approach of GDP

Why is 'taxes less subsidies' a part of the calculation of GDP (income approach)? Is it because in the expenditure method of GDP, consumption expenditure will exceed those of the total "wages and ...
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Can't a country grow its GDP without foreign investment?

Whenever various developing countries around the world talk about growing their economies, they talk about facilitating foreign investments and they put so much emphasis on it as if a country's ...
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How large is the Underground Economy in the U.S

How large is the Underground Economy in the US, and is it growing or getting smaller as a percent of GDP?
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How does government spending on imported goods affect GDP?

How does government spending on imported goods affect GDP? Is it first counted as government spending and then subtracted as imports? For instance, if the US government buy a new accounting system ...
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GDP Calculation and treatment of Personal Savings

While calculating GDP of nation, how personal savings which is not invested in economy or has become part mandatory reserve ratio of government is treated? Similarly do we include import and export of ...
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What would the minimum threshold of % GDP removed from the economy that would trigger a major depression

Potentially a stupid question, but this is the internet... As I understand, a depression is considered a decline of 10% GDP -- but that is over the course of some time. As a thought experiment, ...
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Estimating the labor force responsible for a percent of GDP growth

I am looking to estimate the employed labor force responsible for 67% GDP world GDP growth. According to this Brookings report, the 300 largest metros in the world accounted for 67% of GDP growth. I ...
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Economic history/geography of the UK (1960-today)

I am not an economist and I am looking for reference knowledge about how the economy of the UK (mainly focussing on England/Scotland/Wales) developed over the past 5 decades. The kind of information I ...
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What would be the GDP of India on CPI for year 2010-2014?

Since the government of India changed the GDP calculation method from WPI to CPI and according to government GDP is increasing than it was before. But the government is comparing the new GDP(with CPI) ...
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How Switzerland has significantly high cost of living as compared to its neighboring countries?

Despite being a small country (area-wise), how Switzerland can sustain a high cost of living? I get the logic that the pay of employees would be proportionally higher, so they can sustain a high ...
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What accounts for the high GDP of the United States?

Wikipedia defines GDP as: Measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time. So, I take it that the total value of all goods (and ...
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best books about GDP [closed]

i would appreciate titles on GDP--academic and lay. ty
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Relevance of government liabilities to GDP

After Malaysia's national debt was [reassessed][1], its totaled $250bn along with other government liabilities. Now, I'm having trouble understanding the direct relevance of the ratio of goverment ...
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Quarterly GDP growth: YoY vs QoQ / terminology

Quarterly GDP growth can be calculated either in terms of YoY change or - in the case of seasonally adjusted data - in terms of QoQ change. (A third option would be to annualize the QoQ rate.) To ...
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Equation: If the equilibrium level of GDP is $21,500, what is the marginal propensity to consume?

Equations for C, I, G, and NX are given below. If the equilibrium level of GDP is $21,500, what is the marginal propensity to consume? C = 1,500 + (MPC)Y I = 1,000 G = 2,000 NX = -200
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Relation between growth rate of GDP and real interest rate for sustainable debt-to-GDP ratio

Why is the relation between the growth rate of GDP and the real interest rate important for sustaining the government the debt-to-GDP ratio ?
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Why Does National Data Usually Cite Average Income Rather than Median Income?

When I try to look into standard of living in a given country, I try to find median income figures. I can almost never find them. Instead, all of the data I can find is about average income, GDP per ...
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Are Federal Reserve Banks accurately forecasting GDP?

Following on a prior question Objective evidence of USA economic "boom", I took a look at the GDP forecasts for 2018 Q2 provided by the Federal Reserve Bank of Atlanta and NY. As of May 9 the Atlanta ...
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Is there objective evidence that the US economy is “booming”?

I realize that it's the political pundits that are saying it, but they never seem to provide evidence that the economy is "booming". The dictionary definition of "booming" is having a period of ...
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How does a decrease in money supply affect price levels and Real GDP in the short run?

Specifically, when a short run AS curve is positive, how does a decrease in money supply affect price levels and Real GDP in the short run? Thank you!
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Interpretation of a case in which There is a significant difference between consumer price index and GDP deflator?

We know the both GDP deflator and consumer price index are often used for measuring inflation. Now my question is how a case in which there is a significant difference between them be justified? My ...
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Consumption Tax Effect

A country imposed a value-added tax of 7% on the consumption of the majority of its goods and services. Said government has a large and relentless govt budget ...
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1answer
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Predicting GDP contribution from market share

I want to find the GDP share of several companies, but I have their market share. Now we know that these two are not equal, and the market share to GDP ratio represents general overvaluation or ...
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GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
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In what country outside of the EU is the public sector the highest percentage of GDP?

The article Railway strikes test Macron’s reforms - French strikes states that "Mr Macron’s reform of SNCF is only part of a bigger effort to reshape the welfare state in a country where the public ...
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Will an increase in interest rate cause short run aggregate supply to shift?

Most business borrow for financing their purchases of raw material and capital etc. Shouldn't a interest rate rise cause cost of production to increase, therefore shifting SRAS to left? Thanks in ...
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Government expenditure multiplier in a class divided society

Supposing that a society is divided between a rich class and a poor class. Also supposing that $0<k<1$ is the proportion of GDP going to poor class and $(1-k)$ of the GDP going to the richer ...
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real rates and domestic demand

recently i read somewhere that an emerging economy was vulnerable because it was running low real rates that failed to contain domestic demand pressures. can someone explain what is meant by this? i ...
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How does opening inventory affect the measurement of GDP?

So I understand that opening inventory is the unsold goods from last period which were treated as investment expenditure in that period. But what happens to GDP in this next period when these goods ...
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Using metrics provided by FRED to identify the business cycle

I am interested to see how the "business cycle" is associated with our firms sales. The hope is that if we can show that our sales line up with the business cycle then we can make decisions ...
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1answer
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rates vs. level

For my thesis I will run some regression (OLS and ML: Probit). I like to distingish between variables in growth rates and variables in level form, if there is any important issue that I have to ...
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Debt bearing capacity

In times of low yields and the prospect of rising yields, I asked myself if the european countries can ceteris-paribus cope with rising yields. Is there a way to calculate the effect of rising yields (...
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How can the “Share of merchandise imports at current PPPs” be negative?

I'm looking at the Penn World Table 9.0 data, and find that the "Share of merchandise imports at current PPPs" (csh_m) can be negative. For example, ...
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1answer
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How are GDP rates calculated?

We often hear that the GDP grew 2 % the past quarter, or something like that. But we are also told the GDP grows annually about 2-3 % every year. How can both be true? If the GDP grows 2 % in just ...
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Calculate real GDP

Assume that the annual growth GDP per capita is 2%, how much will the real GDP per capita increase in 10 years. I know the manual way is to take 2 percent every years. For example after 1 year would ...
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1answer
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Can a spending freeze solve the problem of the Italian enormous government debt?

In view of the upcoming Italian general election, I've been reading the program of a party (please let me know in the comments whether I can/should mention its name), and in a section of it they ...
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How GDP by expenditure and GDP by income method are same in this case?

Suppose I earn factor wage ₹1000 in the year 2018 and I pay a tax of ₹100 to the government. So GDP by income method is ₹1000 as we ignore transfer payments. Now if I spent all my 900 on domestic ...
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Microeconomics of GDP

Macroeconomists tend to study GDP in terms of macro variables. Microeconomists study general equilibrium (among other thinga of course). Is there theory about the relation between general ...
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GDP Identity:Why does $\text{C+S+T = C+I+G+(X-M)}$?

$$\text{C+S+T = Y = C+I+G+(X-M)}$$ where: $\text{Y}$ is GDP $\text{C}$ is Private consumption $\text{S}$ is Private savings $\text{T}$ is net taxes $\text{I}$ is investment $\text{G}$ is ...