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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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How to calculate change in GDP using valued added?

Suppose that Roots buys 5 million dollars in leather produced this year in Alberta and 1 million dollars in zippers produced last year in Toronto to make 9 million dollars worth of leather jackets in ...
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Why does decrease in fixed taxes accompanied by a decrease in Government Spending of the same amount will decrease GDP?

I personally don't agree because change in GDP caused by decreased in fixed taxes should be $\triangle$ fixed taxes $ \times \frac{-b}{1-MPE}$(fix tax multiplier), which turns out to be a positive ...
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Why is machine built this year but not sold this year included in GDP?

GDP is the sum of market value of all final goods in the current year, so why is is machine built this year but not sold this year included? In addition why is machine not built this year but sold ...
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Converting a GDP series to constant international dollars

I want to convert a GDP series (I have it in current euros) of a country to constant 2005 international dollars. My idea is to divide the series by year 2005's $PPP$ conversion factor (the exchange ...
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If I employ someone to destroy a building, what is the net GDP impact?

Can this one-off cases be extended? For instance, if I employ someone to destroy 50 buildings and rebuild them, does that contribute an increase in GDP?
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Government Spending vs. Investment Spending

What is the difference between government spending on physical capital and investment spending by government on physical capital?
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How is a GDP of an economy unaffected with reduction in GNP?

I was reading my economics book and encountered with a paragraph which read: "But GDP/NNP are now not considered as the best measures for the growth because countries having high extended debts are ...
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What is “depreciation” in economics?

I have no background in Economics and I am just starting with it. I was reading about the basic terminologies like domestic output, income, and etc. Then, I encountered a term "depreciation" -- It was ...
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Repercusions of fabricated GDP (China)

China has fabricated its GDP in the past. Which are the real-world repercussions of doing so? Let me pose an scenario: If China were in a recession (say, -1% for two quarters), but posts 1% for both, ...
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GNI versus GNP for Measuring Development

In the calculation of the Human Development Index, Gross National Income (GNI) is used rather than GNP. I've searched around on the internet, but I haven't found a clear explanation of what the ...
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Why did the Greek GDP grow so fast between 2002 and 2004?

Here is the history of the Greek GDP. In 2004 year it was 239.7\$ billion, but in 2002 it was 157.7\$ billion. It grew by approximately 50%. How did it grow so fast?
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Applying real growth rate to nominal value

What happens if one applies a real GDP growth rate to a nominal GDP value? The result can't be a GDP figure in constant prices, since that would imply applying a real GDP growth rate to constant GDP ...
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Is it appropriate to change the base year of the real GDP to a more recent one?

I have a dataset containing Venezuela's nominal GDP, real GDP, GDP deflator and population from 1997 to 2013. I am interested in calculating real GDP per capita, but the base year of the GDP deflator ...
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Are many of the traditionally oil dependent Gulf states really successfully diversifying their economies?

I've often heard the claim that many Persian Gulf states are successfully diversifying their economies away from oil (e.g. non-oil share of UAE's GDP is 71% and in Saudi Arabia, non-petroleum sectors ...
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US trade outpaces GDP

I notice that US exports doubled between 2000 and 2011, imports also increasing greatly, but GDP only grew by 20%. Thus, trade in the United States seems to have grown substantially faster than ...
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How does an UHN individual leverage their wealth? [closed]

How does an UHN individual leverage their wealth? Do they in fact do so, and should for example Bill Gates' 80 billion be understood as 800 - 900 billion dollar if he leverage his wealth 10 x? ...
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Leveraging private capital

If an ultra high networth individual, like Bill Gates, Mark Zuckerberg, Carlos Slim, Paul Allen, Elizabeth of Windsor, Amancio Ortega, Liliane Bettencourt, Stefan Persson, Bernard Arnault etc. would ...
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Why are imports subtracted from GDP?

GDP is a measure of a country's production. $$GDP = C + I + G + X_n$$ $C$ = Consumer Consumption $I$ = Gross Investment $G$ = Government Expenditures $X_n$ = Exports - Imports Exports are what we ...
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Why GDP positive growth does not decrease inflation?

My understanding is : If production increases, it would imply the amount of goods increases as well for the same amount of money available in the market. Because of this, we should see prices of goods ...
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Measure combining growth and distribution of income

A frequently used measure of economic progress is GDP growth. (There are alternative economic indicators as well, such as the Human Development Index.) But there are problems with GDP growth. For ...
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GDP to employed people ration - solow swan model

Two countries A and B have identical production function $Y=AK^{1/3}N^{2/3}$, they are identical when it comes to all other factors with the exception that savings rate is $s_A>s_B$. a) What is the ...
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Calculating rate of growth of per capita income

Given this question: National income is increasing by 1.5% a year and population by 2.5% a year. What is the rate of growth of per capita income? Attempt: Since per capita income is GDP/ ...
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GDP type: WDA, NSA, SA

What are the acronyms for? SA, WDA, NSA. I was able to find WDA: written down allowance, but I am not sure is correct and how is applicable to GDP.
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Growth theory / Initial GDP: positive coefficient sign

I estimated growth regressions for several EU countries. In each of them, the sign of "initial GDP"'s coefficient is statistically significant but positive, which contradicts growth theory as well as ...
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Gross National Income for Personal Income?

is there such a thing as the measure that amounts to roughly the aggregate of personal income for a country (say: all salaries combined) and an aggregate of corporate income. But as separate figures, ...
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Correlation and Causality: Data comparison of educational spending and GDP growth

I am interested as to whether or not Educational spending does or does not affect GDP and GDP growth (and as an aside GDP per Capita). As an overview, I've ranked the countries in each aspect (with 1 ...
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How can Aggregate Supply = National Income

I have researched two seemingly contradictory definitions for Aggregate Supply, and I don't know how to reconcile them: The total level of income in an economy over a given period of time. or The ...
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Is economic growth measured in real GDP or in real GDP per capita?

As an example, take a country where real GDP (measured in base year dollars) increases every year, but where the real GDP per capita (also measured in base year dollars) fluctuates, increasing and ...
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The period of the business cycle in which the real GDP is increasing is called the?

The period of the business cycle in which the real GDP is increasing is called the? And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going ...
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Why did the Federal Reserve change the data about USA GDP?

This is the data published on 20 March 2013 FOMC meeting: (http://www.federalreserve.gov/monetarypolicy/fomcprojtabl20130320.htm) 20 March 2013, Change in real GDP (actual): ...
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If a company buys a robot, it's part of investment. If a person buys a car, it's part of consumption. Why?

As I understand it, a company buying a robot -- something that depreciates over time and will eventually break -- is included in investment because it provides a long term benefit (increase in GDP). ...
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World bank data - GDP per capita current US\$ vs constant 2005 US\$

I'm looking at two charts from world bank on GDP per capita for Croatia and Russia - and this is what I get: Now, from what I gathered, the first chart should represent nominal gdp and the second one ...
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Two ways of calculating real GDP: do they produce the same result?

My professor gave us two formulas for GDP for 2012 in 2010 dollars: y = P1 (2010) * Q1 (2012) + P2 (2010) * Q2 (2012) ... And: ...
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Calculating the Net Domestic Product

This should be fairly simple but I think I am missing something here. Gross Investments: 46 Exports: 9 Disposable Income: 190 Personal Savings: 10 Purchases: 84 Net Foreign Factor ...
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With interest rates and inflation in the U.S. low and growth moderate, where is the money going?

Question is basically in the title. With interest rates so low for such a long period of time, I wonder where are that injected cash has gone? I realize that the economy has definetly grown quite ...
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International shipping services count as exports?

A Greek ship owner transports mouse traps from Albania to Japan, making every year ten million Euro in revenue and one million Euro in profits. The total value of the mouse traps he transports every ...
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Why is GDP equal to the sum of revenues?

National Income can be expressed in two ways : In can be derived from the GDP, as, roughly, a sum of "money spent" : GDP is equal to C + G + I + NX, where C, G, I and NX are houshold consumption, ...
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How to distinguish between nominal and real GSP growth?

What is the process used to distinguish the change in Gross Domestic Product (GDP) due to an increased output of goods and services from the change due to an increased prices? Why do we make it ...
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How Does GDP Differ From NNW as an economic measure?

When people talk about the size of an economy, they often refer to the GDP or changes to it, but seldom refer to the Net National Wealth. Obviously there are some superficial differences: GDP is ...
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What is the Gross Domestic Product (GDP)?

I suppose GDP is supposed to create a measure of a country's wealth/welfare, something easily indexable. But how exactly is it composed? And is its composition disputed? How good is it at measuring a ...
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Which data on GDP to use?

Wiki's article provides with 3 sources for GDP data: IMF, World Bank and CIA. I wonder which of them is better (i.e. more accurate)? Also, what about reliability of so called Penn tables? If anyone ...
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How does real GDP take into account technological advancement?

I'm asking this question, since it was not explained in my textbook and since I couldn't find the answer in Internet. For example, 1 TB HDD costs 50 dollars now, and 100 GB HDD costed 50 dollars in ...
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Estimation of the future growth of real GDP per capita of the world

From 60's to 70's, the real GDP growth per capita of the world fluctuated about 3%. Since then, it fluctuated about 1.8% or somewhere around. (I mean, the average would be about 1.8% since 1970.) I ...
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How is software treated in Gross Domestic Product calculations?

Is there a concise explanation of how software is treated in GDP calculations? It seems a bit complicated. I can only figure out part of the story: For consumer purchases, I think all software ...
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How do I convert real gdp into chained-dollar real GDP?

I have quarterly data for real GDP from 1981-2015. I also have quarterly chained-dollar real GDP from 61-2012. I need to have them converted into one series. I've looked up several different formulas ...
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Calculating nominal GDP

I would like to understand one detail of how nominal GDP of a country in a given year is calculated. It seems to me that the GDP in each country is first calculated in the national currency and then ...
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2answers
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Calculate GDP by three different methods

I have the following question to answer in my macroeconomics textbook. Steel producer makes steel worth 4000 out of which 0.25 is sold to machines producer and 0.75 of steel is being sold to the car ...
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GDP and DEBT/GDP ratio of a Nation [closed]

Imagine following tiny nation. It consist only of 100 people running a car manufacturing plant. The nation imports every resource it needs for manufacturing those cars. It also imports all energy, ...
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Changing the base year of Real GDP from 2001 Euros to 1990 Geary–Khamis dollars

Estimating regional Gdp in Italy (1871-2001): sources, methodology, and results (Felice, E) This article has Italian historical regional GDP figures, but they are in constant 2001 euros not in 1990 ...
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What would be the GDP of Algeria without Oil & Gas?

Facts : *Algeria's GDP is 230 B$, *Oil & Gas account for 30% (70 B$) My simplistic reasoning would say : Substract 70 from 230 and get a new GDP of 160 B$. ...