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.

Filter by
Sorted by
Tagged with
0
votes
1answer
24 views

Confused why GDP/GDP growth is a good measure

I am just a lay person confused about why GDP is a good measure. For example, in the news, it is always reported that GDP grew in the last quarter etc., or China is the only country experiencing GDP ...
-2
votes
0answers
15 views

What could the government do to boost GDP if inflation rises but consumer spending falls?

I don't know economics that well, but just curious what would happen in this scenario. Let's say inflation rises but wages do not increase with inflation (due to the capitalist system). Sure the ...
0
votes
1answer
20 views

Is government/public sector percentage contribution to the GDP the same as government expenditure as percentage of the GDP?

As far as I understand, every transaction done in a country counts for GDP. So, if the government is building a road that counts for the GDP, right? So I was looking for a table which shows me the ...
0
votes
1answer
19 views

Does the goods part of the GDP only include goods produce during the last calendar year?

My textbook says this: The quantity of goods and services includes only those goods and services that manufacturers produced during the past calendar year. If this is the case, does it mean that a ...
1
vote
1answer
146 views

Can an unprofitable company increase GDP?

One of the textbook ways to calculate GDP is through the factor payments. We sum up the cost of salaries and retained earnings of all firms in the economy (assuming no taxes or international trade). ...
0
votes
1answer
26 views

Do Non-Productive Investments Need to Be Written Down in GDP Accounting?

In this article, Professor Michael Pettis talks about how GDP can be overstated if non-productive assets are not written down. However, I've seen in a few places (in the comment section of the link ...
0
votes
0answers
30 views

Relationship between productivity and GDP

I was looking at the OECD data for GDP per hour worked as a stand in for productivity and was extremely confused when I started comparing the numbers and tried to understand the relationship between ...
0
votes
0answers
7 views

How is GDP growth interpreted? For example, what does 6% q/q saar mean?

For GDP growth or other economic data, I noticed that it's usually quoted in q/q (quarter over quarter), m/m (month over month), and y/y (year over year). I've also seen q/q saar. Using GDP as an ...
0
votes
1answer
15 views

GDP Income Approach by industry: Public Administration calculation?

How is Public Administration generally considered when looking at GDP Income Approach by industry? Is remuneration of employees the main factor considered, since there is no Operating Surplus? I am ...
0
votes
1answer
23 views

real or nominal GDP to compare to wage price index?

The recent Australian budget projects trends over the next four years. I'm looking at a summary here. If I want to calculate the share of GDP going to wages, should I compare the percentage changes ...
2
votes
1answer
60 views

Why GDP is converted to 2010 $US constant in international studies?

GDP is a widely-used macro control variable in finance-related papers, especially for international studies. I am wondering what is the reason why GDP is converted to $US 2010 as noted by WorldBank. ...
0
votes
1answer
36 views

Why doesn't national savings, in aggregate, always equal to zero in monetary terms?

Referring to this question and this one Imagine you had a closed economy with two people and they both started off with $100 dollars. How would net savings in aggregate ever not be zero? Anything ...
1
vote
1answer
48 views

How does the US have gross national savings while running a trade deficit?

If a country has a positive savings rate, that means that more money had to come into the country from somewhere outside of the country. However, we run a trade deficit, so we're actually sending more ...
1
vote
1answer
22 views

Does savings always equal investment? Are there any cases where savings could be removed from the economic system altogether and break the balance?

Assuming a closed economy, does savings always have to equal investment? If an individual produces a certain amount of a resource and saves it, that becomes part of the savings of the economy. However,...
0
votes
1answer
16 views

Would a car that was produced last year but bought this year be accounted for in the GDP? [duplicate]

The equation for the GDP is: $$C+I+G+(X-M)$$ If consumers are buying new cars produced last year...would those still be included in the GDP?
0
votes
0answers
15 views

How PMI is the best leading economic indicator and how to retrieve it?

From Bloomberg Market Concept, PMI (Purchasing Managers' Index) is the best leading indicator that alerts to forthcoming turning points in real GDP growth. For example, PMI fell to its low point and ...
1
vote
0answers
26 views

Modelling GDP growth rates with an AR(1) process

I am trying to model the growth rates of real output per worker. I read that GDP growth rates are often assumed to be stationary and are modelled using an AR(1) process, so I took logs and then took ...
7
votes
4answers
267 views

Why does the inflation not follow the money supply?

To my understanding classical economic theory tells us that inflation occurs when the money supply is increased faster than the economic growth. Lately there has been a sharp rise in the rate of money ...
0
votes
0answers
8 views

Is importing included in the value of the final product that is calculated in GDP

I have been arguing with my friends about wheather imports are included in the gdp or not. For example, I have a locally built device that is worth 900\$. Then I imported a chip worth 100\$ and ...
0
votes
0answers
31 views

Comparing Real GDP with different base years and currencies

I have a quarterly panel data of several countries. I have taken the data from Fred. Some countries' real gdp is in chained 2010 prices and some in other years (such as 2015 and 2018). How can I make ...
0
votes
1answer
54 views

Values of A,K,N,a in Cobb-Douglas function expressing GDP

In many basic macroeconomics textbooks a Cobb-Douglas production function with constant returns to scale is used to express the output of the economy as a function of labor and capital: $Y=AK^aN^{1-a}$...
0
votes
0answers
43 views

Finding simple multiplier using G,Y,P,W

Let us say the estimated equation for the economy’s aggregate demand is Y = 400 – 15P + 8G And the estimated equation for the economy’s aggregate supply is Y = 5 + 11P – 10W where Y is the country’s ...
1
vote
3answers
95 views

How is the differential definition of money supply, velocity, and GDP defined?

I was reading: This article on money velocity (see the summary section) Where two formulas are presented: first an equality: $$\text{Quantity of Money} (M) \times \text{Velocity of Money} (V) = \...
1
vote
1answer
25 views

Would be there redistribution of wealth from actors with sticky prices to actors with more flexible prices under stagflation?

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....
1
vote
1answer
29 views

Is GDP the market value of goods consumed or goods produced in a time period?

Definitions across various resources state that GDP is the market vaue of all goods 'produced' in a certain time period. But while calculating GDP by expenditure method, consumers' spending is one of ...
0
votes
1answer
33 views

Imports not used in the country, still counting in the GDP calculation?

When we calculating GDP we use the given formula $GDP = C + I + P + X - M$ Here $M$ means the imports. My question is: What if I am not currently using the imports. For example I might have by the ...
0
votes
2answers
45 views

What would be a an accurate metric of the real economy without the financial services sector?

A youtube video by RT predicts that China's economy will surpass the US in GDP by 2028. The conclusion was a result of projections of GDP growth for both nation's economies. According to anearlier ...
1
vote
0answers
17 views

Convert data in current US dollars to constant international dollars (PWT)

I would like to convert a nominal GDP series in US dollars to real GDP at constant PPP using Penn Wold Table (PWT) version 10.0 (see here). So far, I managed to get the real GDP at current PPP. Using ...
1
vote
1answer
31 views

Accounting for household work in the GDP

It is often told that domestic work is not included in the GDP estimates due to difficulty in measuring them. I wanted to know if there are any advances in measuring this, or any alternatives that ...
0
votes
1answer
39 views

Currency and GDP

USA's GDP (at this time) is ~21 trillion dollards, and UK's is ~2.8 trillion dollars, then how come UK's currency is more than USA's. By that I mean, 1 GBP gets you more than 1 USD.
0
votes
1answer
29 views

LM-Curve formula question

An LM Curve can be described as following $M^d(Y,i) = M_0 + M_1Y – M_2i$ $M^d = M/P$ M and P are exogen I know that $i$ is interest rate, and Y is GDP. Why is $M_1$ and $M_2$ positive? And what does $...
0
votes
1answer
24 views

Derive IS-Curve (Y)

An Economy has a GDP described by the following: $Z=C(Y −T)+G+I(r)$ $C(Y −T)=C_0 +C_1(Y −T)$ $I(r) = I_0 − I_1r$ where Z is planned expenditure, Y is GDP, T is tax, G is public consumption, I is ...
2
votes
2answers
107 views

Textbooks claim that the difference between GDP and GNP (or GNI) is about geography vs citizenship--is this correct?

Many textbooks claim that the difference between GDP and GNP is about geography vs citizenship. For example, Colander: GDP is output produced within a country’s borders; GNP is output produced by a ...
0
votes
0answers
19 views

Relationship between HICP and GDP [duplicate]

the title says it all. What is the relation between HICP and GDP. And will there be a high inflation just before recessions? So the upper graph is the percentual change of the BNP from the last year, ...
0
votes
0answers
48 views

GDP and business cycles

So the blue line is Finlands GDP, and it tells the percentual change from the last year. when the line is under 0% does it mean that it is a recession, and when it is over 0% is it an expansion? Is it ...
1
vote
1answer
52 views

What explains why Puerto Rico has much lower GNP than GDP?

I can understand why some countries like Luxembourg, Singapore, and Ireland have much lower GNP than GDP. But why is the same true for Puerto Rico? I would've thought that since lots of Puerto Ricans ...
2
votes
1answer
52 views

Economic interpretation: IS curve contra GDP in equilibrium

I have in a problem shown that for the IS curve (Y) contra the GDP in equilibrium ($Y^*$) it applies that: $\frac{\partial Y}{\partial G}>\frac{\partial Y^*}{\partial G}$. Where G is public ...
0
votes
1answer
91 views

A world only with two contries (net exporter)

We assume that we have two and only two contries: Albania and Bulgaria. There is complete free trade between the two countries. The aggregate investments in Albania are given by: $$I^A=A-ar$$ where $A,...
-1
votes
1answer
38 views

How Does One Describe GDP Relations Assuming Only Wages and Profit Income in the One Person Economy?

I am trying to isolate a simple model for GDP accounting in the one person economy also known as the Crusoe economy. Because Crusoe lives alone and has dominion (exclusive control) over all items of ...
0
votes
1answer
32 views

How are housing costs reflected in factor shares of GDP?

The labour share of GDP in the UK is around 55% (Source). Presumably all labour is supplied by households and all households need a house. The average percentage of total monthly household income ...
1
vote
1answer
49 views

Connection between saving and investments-Y=C+I+G+NX [duplicate]

I understand Y-G-C = I+NX = Savings . The equation that we see everywhere in economic textbooks. I see the mathematical logic. BUT Given that I = capital investment in GDP accounting surely Savings ...
0
votes
0answers
22 views

Is this a correct way of calculating productivity? And can the proposed data be (accurately) used for doing so?

I want to know if my thinking for calculating productivity [2019-USD/hour-worked] is correct. Basics: Take the GDP of a country and divide by the total amount of hours worked in that country -> ...
2
votes
0answers
18 views

World Bank and OECD statistics unmatch tax revenue as % of GDP

I have been looking for statistics on tax revenue to GDP ratio of different countries. I've found it on World Bank website. https://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS?view=chart which ...
1
vote
1answer
40 views

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 ...
0
votes
1answer
35 views

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 ...
0
votes
1answer
37 views

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 ...
0
votes
1answer
52 views

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 ...
3
votes
1answer
175 views

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 ...
2
votes
2answers
48 views

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 ...
3
votes
2answers
346 views

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 ...

1
2 3 4 5
9