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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6
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2answers
56 views

GDP simple question got me confused: the sale of a capital asset

a) Delta Air Lines buys a new jet from Boeing for 200 million dollars. b) Delta Air Lines sells **one of its jets to Kim Kardashian for 100 million dollars. So.. a) $200 million investment, ...
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What is Q in the quantitative theory of money?

I am testing the quantitative theory of money for South Africa. QP = Mv. It is fairly clear what M and P are (broad money, or M1, price index, etc). But I am puzzled with Q. Is it GDP or does it ...
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1answer
274 views

Basic question on calculating real GDP

My book says the way we calculate real GDP in a given year is by adding the quantities of all goods and services produced in that year multiplied by their prices in some base year. There are actually ...
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1answer
101 views

What does it mean when the natural rate of unemployment is greater than the actual rate?

According to this graph: I just don't get when natural unemployment is greater than actual unemployment. Why is this the case?
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1answer
100 views

Do outputs of a country produced outside its borders contribute to its citizens' well-being?

For example, a Japanese automobile company of which manufacturing factory located in China. Do the outputs produce from the factory located in China contribute to the well being of the Chinese people ...
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1answer
326 views

Why are there base years for GDP in current prices (or Nominal GDP)?

I am looking at GDP in current prices for Indian states and there are multiple base years. This is confusing because GDP in current prices is supposed to be reported in the value of the currency for ...
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1answer
38 views

Turkish economy after 2013

Source. Why did the Turkish economy plunge after 2013? Why didn't it recover ever since?
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1answer
50 views

What makes statistics economical reports so varied and different?

Search for Iran's GDP in Google, and what you will see is an image representing GDP of Iran, compared to other neighbor countries. It gives us the value of 393.4 ...
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1answer
27 views

GDP projections for the fifty American states

I'm looking for GDP projections for the fifty American states (up till 2040, or 2050). Are these available online, or in any economics papers? I've found GDP projections for America, and historical ...
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1answer
97 views

Measuring asymmetry between countries GDP per capita

I am looking for an objective way of measuring the "asymmetry" (the overall level of difference) of the GDP per Capita in groups of countries involved in an international agreement. So far, the best ...
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2answers
47 views

Historical GDP of world economies back to 1945: What are the most complete and reliable data sets?

I need the historical GDP of all modern countries (or at least the vast majority) from 1945 to now. It seems the world bank data only starts in 1960 or later. I found Angus Maddison's data, but I don'...
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1answer
75 views

What is the standard error on quarterly GDP figure? [closed]

The government and media seem to judge whether it is in a good economy right now based on its quarterly GDP figure. However, I wonder how its figure is trustworthy. Even if the quarterly GDP is +1.2%,...
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Who gathers the production/use data that makes up GDP? And how?

I know that GDP can be calculated from the national accounts using data which says how much of each industry's output was bought by each other industry. But how is this kind of supply/use data ...
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1answer
900 views

How are cryptocurrencies reported in GDP?

Apparently the total market value of cryptocurrencies is currently close to $118 billion. Is any of this reflected in GDP figures over the years? For example, if I start mining bitcoin today, I will ...
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1answer
62 views

Which measures are there to evaluate a country economical development? [duplicate]

I'm familiar with the measures of Gross domestic product (GDP PPP) total, per capita and GDP nominal total and per capita. But I'm not sure if these measures evaluate the economical development of a ...
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1answer
2k views

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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1answer
208 views

Difference between GDP and GNI in this exercise

Based on domestic production we observe the following income flows in a period: labor income of domestic residents: 150\$ capital income received by foreign residents with a foreign ...
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3answers
48 views

What is used more: economic growth rate compared to previous quarter (GPSA), or growth rate compared to the same quarter of the previous year (GYSA)

For my thesis I'm writing about the Baltic states and why they didn't vote out their incumbent governments despite undergoing severe austerity. As part of that I'm looking at their growth rates from ...
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1answer
36 views

Comparing GDP contractions between Russia and US

I was reading Rogoff's piece on the Russia's economic outlook, and in a paragraph, he states The shock to the real economy has been severe, with Russia suffering a decline in output in 2015 and ...
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1answer
97 views

Regression of Real GDP on Intellectual Property Products Problem

I have a question regarding regressing the log growth of Real GDP on the log growth of Intellectual Property production which contributes to GDP (through using the expenditure method of calculating ...
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1answer
707 views

Increase in per capita GDP always means GDP is growing?

This question was asked in very popular civil services examination. Question is : Whether the following statement is correct or not? Statement : If a country is experiencing increase in its per-...
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1answer
536 views

When the base year changes, does it affect data at current prices as well?

I'm trying to collect current GDP data for India from 1990-2016. But, India changed its base year in 2011. So, to get a continuous series, do I have to change the data to a common base?
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68 views

why has the GDP per capita of Ireland grown of almost 30% between 2014 and 2015?

I came across these graphs today : https://data.oecd.org/gdp/gross-domestic-product-gdp.htm https://data.oecd.org/lprdty/gdp-per-hour-worked.htm In both, something doesn't make sense for me: the ...
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90 views

Why are Canadian provinces' debt-to-GDP so much higher than the US?

By the current account, the highest debt-to-GDP state in the US is NY, which is around 23%, with most states around 18%. By comparison, Canadian provinces tend to have much higher ratio, with Ontario ...
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Real GDP Computation and Justification

How does one really compute inflation? I just now quickly looked up how the real GDP was computed. It is using the base year price to multiply the number of products traded. Is that meaningful? Is a ...
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Breaking down components of GDP per capita

GDP per capita can be broken down into 4 smaller components: Labor productivity, Average hours worked, Employment rate and Participation rate as can be deduced from the following formula: What I'd ...
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1answer
287 views

GDP in expenditure approach

GDP calculated using expenditure apporach is like this: GDP=C+I+G+(X-M) However on this site: http://www.singstat.gov.sg/statistics/visualising-data/charts/share-of-gdp-by-expenditure The data is ...
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1answer
202 views

Real GDP explanatory variable

In order to make an econometric model for explaining the evolution of the US Real GDP, does it make sense (from an economic point of view, not from a statistical one) to include CPI (as a proxy for ...
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159 views

China GDP Data - Base year

I had been searching for the GDP data of China and finally found it here. The dataset gives the log real GDP data from 1992 (annual, quarterly and monthly). It doesn't specify the base year of the ...
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1answer
2k views

Converting current to constant USD values for trade data (UN Comtrade)

I am using WB (country GDP) data in combination with UN Comtrade (bilateral trade) data. I need to divide bilateral trade by GDP so as to find out which % of a country's GDP comes from bilateral trade....
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1answer
5k views

What is the Credit-to-GDP gap exactly?

I have been hearing a lot about this metric in relation to rising fears of a Chinese financial crisis. I am wondering, what exactly does this mean? I am told it refers to the difference between ...
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1answer
73 views

How can two countries of roughly the same size, population and GDP have such big differences in minimum wage?

We could answer this question theoretically, or give a real-world example of two such countries. Is there anything more interesting to say than: that's just something decided by the government? Could ...
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1answer
459 views

Are government income and government employee wages counted in GDP? (income approach) [closed]

The Wikipedia article does not include it nor exclude it.
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45 views

UK GDP accounts for profits on sale of home

A house is built and sold to a family as their primary residence for £1000 in 2000. The purchase price is included in GDP for 2000. In 2001 the house is sold for £2500. The seller pays solicitors' and ...
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1answer
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Confusion regarding debt to GDP ratio

While looking at debt to GDP ratio of various countries, I had difficulty with different figures on different websites. Look at this which shows China's debt to GDP ratio as 43.9%: http://www....
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Do unsold goods still make it into the GDP?

Assuming Car Motors in Tiny Country has 1m USD and it spends it on workers and suppliers to produce 1m USD worth of cars (cost) for export at 2m USD (1m USD profit). A tsunami hits and drags all the ...
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4answers
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Why are “transfer payments” not part of GDP?

It is well-known that transfer payments are not counted in GDP (e.g. wikipedia 1 and wikipedia 2). For instance, exercise 2.c in Chapter 2 of Jones book's Macroeconomics ask to calculate how much GDP ...
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1answer
688 views

Help please, I cant work out this equation [closed]

. In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth ...
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1answer
470 views

Why is the consumption line and 45degree line's intersection not the equilibrium income level?

The question is as below The answer is A. I understand why it is A, but do not understand why it isn't C. Doesn't the point where the consumption line and 45 degrees line intersect represents the ...
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0answers
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How much does one percent of unemployment 'cost'? (Unemployment elasticity)

There is always debate that increasing minimum salary will pour in more money into the budget as those who get minimum salary will spend them immediately. The counter argument is that increasing ...
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1answer
609 views

Why doesn't anyone talk about GNW (Gross National Wealth)?

I just noticed a very interesting fact. GDP of the United States: $18.5B GDP of China: $11.4B If we look at national wealth... GNW of the United States: $84.8B GNW of China: $24.1B The margin ...
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1answer
76 views

Why the GDP does not decrease even when we are saving from our income?

When we are saving from our income then we don't consume as mush as we earn. So the GDP should decrease as well as the income but this does not happen. Why?
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Explain inflation to an economic novice

I'm trying to get a grasp on how exactly inflation works. What I've read so far seems to be contradictory. In some articles I've read that government spending is always(?) inflationary, and in ...
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1answer
9k views

What's the difference between gross fixed capital formation and gross private domestic investment?

Cited from Wikipedia, we know: Gross private domestic investment is the measure of physical investment used in computing GDP in the measurement of nations' economic activity. This is an important ...
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1answer
47 views

Profit for business owners vs. incomes of the self employed

I am learning the way to calculate GDP with incomes. So there is labor income and capital income. One element of the labor income is incomes of the self-employed. And for Capital income, an element ...
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1answer
733 views

How does borrowed money affect GDP?

Suppose that a household borrows from the bank with %2 interest rate and uses the money for paying rent; Is this a Consumption? May households borrow money from the bank for consumption, not ...
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1answer
165 views

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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2answers
414 views

Can CPI and real GDP have high correlation?

I have historical data where the CPI and GDP are correlated. Does this make sense? If not, how do I test for it?
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1answer
1k views

What is a supply side shock in macroeconomics?

I was hoping someone could clarify what exactly is meant when someone refers to a country as having undergone a 'supply-side shock' and generally speaking when one is evaluating the health or growth ...
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340 views

Is population growth irrelevant with respect to per capita GDP growth

In Solow's growth model the growth rate of the output or GDP of a country is denoted by $g$. In the model this can be decomposed to $$ g = g_l + g_k, $$ where $g_l$ is the growth rate of the effective ...