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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71 views

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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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 ...
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Double counting because of gross mixed income

I was learning the income method of calculating GDP when I stumbled upon this doubt. As per the definition given in the book GDP = GDI (Gross Domestic Income) = Compensation of employees + Gross ...
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25 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 ...
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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 ...
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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 ...
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25 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 ...
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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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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 ...
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1answer
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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 ...
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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.
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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 $...
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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 ...
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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 ...
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Unit root testing in Eviews

I've plotted my data log(GDP) which displays an albeit small upward trend. However, after performing an ADF unit root test log(GDP) it suggests that I can reject H0 [that there is a unit root] at the ...
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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, ...
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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 ...
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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 ...
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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,...
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Quarterly GDP growth terminology: YoY vs QoQ

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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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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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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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 ...
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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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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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1answer
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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 ...
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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 -> ...
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How can I best estimate a company's contribution to GDP?

Would revenues be a good proxy variable? If not, what are the other proxy variables that I can use?
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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 ...
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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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Conversion of GDP PPP International \$ 2005 into GDP PPP International \$ 2011

Essentially I have two different datasets that I'm trying to consolidate. One set of data comes from the World Bank Databank, and is a set of historical GDP PPP values for all countries expressed in ...
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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 ...
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Is there an “ideal” ratio of tax revenue to GDP? Or, at least, can I assume a higher ratio is better?

At the link below, you can see countries have a huge difference in ratios of tax revenue to GDP. Is it fair to assume that a higher ratio is better? Does raising a substantial portion of your GDP in ...
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Convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for a number of countries

Which conversion factor / formula should be used to convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for different countries? I have found an identical question, but without a clear, ...
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1answer
35 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 ...
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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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1answer
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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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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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Why does an increase in money cause a proportionate increase in price level according to classical/neoclassical economists?

First I am not sure what classical economists say but doesn't increase in Money supply decreases interest rate and cause investment to expand and thus GDP rises. Therefore the aggregate demand ...
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How does capital investment (factory, plant, etc.) benefit the region they are located in?

Generally, capital investment is always good for the economy, but I am not sure about the underlying mechanism. For example, if a car factory is built in a certain state, does it improve the economy ...
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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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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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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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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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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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How do government purchases crowd out the private sector?

I am curious about how government purchases crowd out the private sector (if it does). If we look at a graph of the composition of US GDP, it seems that government purchases and investment are ...
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250 views

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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