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
1
vote
2answers
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 ...
2
votes
1answer
46 views

GDP per industry and per region in Europe

I'm looking for a breakdown of GDP per region and industry in Europe. Do such data exist, ideally in the public domain? I'm looking for a breakdown of GDP per region and industry in Europe. Do such ...
5
votes
2answers
82 views

Is a country in economic downturn if its growth rate is negative, but improving?

As I understand it, economic downturn means that economic growth is significantly slowing down or entering into recession. (If anyone wants to correct me, please do so). i.e. Growth rate is decreasing....
2
votes
1answer
496 views

While calcluating GNP, the overall income of a citizen working abroad is considered or only his/her remittances?

Suppose a citizen of Country A is working in Country B with income X USD, and he sends Y USD as remittance to A, what is considered while calculating GNP? X or Y? (X is inclusive of Y)
1
vote
1answer
240 views

Domestic Demand, Private Consumption, Public Consumption, Gross Fixed Investment Relationship

I'm reading the IMF's January 2016 Report on Sweden's Economic Indicators, and the top section has the following: Domestic Demand (2012) Percent Change: -0.6 Indented below are: Private ...
1
vote
2answers
261 views

Why was protectionism considered bad in the great depression?

its said that "there is all-but-universal agreement that the adoption of restrictive trade policies was destructive and counterproductive and that similarly succumbing to protectionism in our current ...
0
votes
2answers
135 views

GNP v. GDP as a true measure of national vibrancy [closed]

Is the GNP a more realistic number or measure of national economic vitality regarding its citizenry/residents of the nation in question versus the GDP?
3
votes
2answers
41 views

If a retailer consumes a good he bought from the producer, does that get accounted into the GDP of a nation?

Let's say we have a soft-drinks store. Say the store sells Pepsi and Coke. If the retailer drinks a bottle of coke from his own store, does that get counted into the GDP of a nation? Or is it only ...
5
votes
2answers
167 views

Are goods that are wasted counted into the GDP of a nation?

If x apples are produced in an economy, and only x - y are consumed (y apples get rotten at different stores in the country), is the value of these wasted apples considered as a part of GDP?
6
votes
4answers
811 views

Do the donated NFL losing team shirts destroy local economies?

I've recently become aware of the fact that the NFL prints both championship teams' shirts in advance to satiate incredible demand -- but instead of destroying the losing teams' shirts like they used ...
0
votes
1answer
220 views

Debt-to-GDP or Debt-to-Revenue?

Which is a better measure of the health of an economy between Debt-to-GDP and Debt-to-Revenue? Why?
2
votes
2answers
2k views

What is the difference between aggregate supply and GDP?

Usually when I read online, I see the following repeated frequently: aggregate demand is equal to GDP. I understand that aggregate expenditures is the aggregate demand at a particular price level, and ...
2
votes
3answers
15k views

What is the relationship between inflation and imports/exports?

According to the aggregate demand curve, when the price level is higher, the real GDP demanded is lower. One of the explanations given is a consequence of the Mundell-Fleming model: "As the price ...
0
votes
1answer
169 views

What would the determinant of the input-output matrix represent? What is the intuition?

I know that the determinant of a 2x2 matrix represents the oriented area of the parallelogram represented by the vectors in the matrix. For 3x3 or higher order matrix it represents the oriented volume....
7
votes
2answers
751 views

Can a closed economy flourish?

I was wondering if it is possible to run a country based only on domestic economy and not to enter the world economy. Basically, if certain economy of a certain country fails and poses threat to world ...
1
vote
1answer
353 views

How does an import driven economy function?

Can a country's economy,where everything is imported from other countries, solely depend on the income from its retail industry?
2
votes
1answer
45 views

Is there anything like ratio between number of manufacturing industries to number of retail shops?

In my country there are very few manufacturing factories,but large numbers of small retail shops (like one shop per house or may be even more). What are the effects in the economy of a country for ...
0
votes
1answer
32 views

If we add up all the income while finding GDP of a country, is income counted multiple times?

Suppose 9 others and I are government employees. We get salary which will be counted while calculating GDP. Let's assume that we 10 are the only customers of a shop (for simplicity). The shopkeeper's ...
4
votes
1answer
186 views

Why use the income approach to approximate GDP if it relies on the value produced by the expenditures approach?

To preface, I'm taking a macroeconomics class and we're learning about measuring GDP. The textbook says that there are two main ways to measure GDP: the expenditures method and the income method. The ...
4
votes
1answer
150 views

How to measure GDP in practice?

You can find many explanations of theoretically how GDP is measured. But how is it done in practice? Is it estimated by extrapolating from small samples of activity or can the overall value be ...
0
votes
1answer
319 views

How to calculate constant GDP in international $ from nominal GDP in local currency units

I want to calculate a constant GDP serie from 1995 till 2014 based on nominal GDP expressed in Yuan (Chinese currency). I already get stuck on how to first make a constant GDP serie based on Yuan, ...
8
votes
3answers
363 views

Is there an alternative metric to GDP that measures a country's assets rather than flows?

The Gross domestic product measures the value of all final goods and services produced in a period. This has some limitations. For example, if a car hits a lightpost and both need to be repaired and ...
1
vote
1answer
129 views

In what sense is economic growth cumulative?

In my economics syllabus, one of the student competences is to "Show the cumulative nature of growth and measure average and annual rates of growth". What I don't understand is how a country's GDP ...
2
votes
1answer
101 views

GDP/PPP influence - Adjusted savings: carbon dioxide damage

I found this variable and I'm not a native english speaker, so I'm a little bit confused with "adjusted savings" right in front of "carbon dioxide damage". I'd like to know what does this variable ...
4
votes
3answers
868 views

Understanding Tertiarization of the Economy

Trying to understand some of the core mechanics of tertiarization in developed economies. According to the WorldBank, "As incomes continue to rise, people’s needs become less “material” and they ...
0
votes
3answers
411 views

Questions on comparing GDP between various countries

What is the difference between OER vs PPP? What fundamentally drives them? Shouldnt an arb opportunity exist and wouldnt that difference then go away? My understanding of OER is the official nominal ...
8
votes
7answers
4k views

What Level of Government Debt to GDP Ratio is Sustainable?

I was reading that Japan has a debt to gdp ratio of 240pc and I cannot understand why this has not left the country "bankrupt"? From looking at this like an ordinary person this level would be ...
1
vote
1answer
50 views

Is there a change over the business cycle in how much of economic activity is market-based?

Out of the total production in an economy, a big part is market-based, as when you make something and sell it. But a big part is not, as when you make something and don't sell it, but exchange it or ...
1
vote
1answer
110 views

Calculating Service Contributions to GDP

Trying to get some clarification on how GDP is calculated for service industries. Are input resources netted out (e.g. fuel for an airline), the same way wheat would be for a loaf of bread? What ...
3
votes
2answers
2k views

Why do we change the base year?

Never, never, understood this. I know what Nominal and Real GDP is, I know how the base year calculations work, my question still remains. The idea behind real GDP that makes most sense to me is the ...
1
vote
0answers
36 views

Recommendations for ways to address gaps in GDP data?

I am a biologist that is using GDP data as part of my next research project and I am finding large gaps in the data, both in terms of years and countries. I am wondering what the best practice is for ...
2
votes
1answer
107 views

Does the GDP contribution of a service sector represent the gross profits of that sector?

I couldn't find a simple answer to this question: does the dollar contribution of a service sector represent the gross profits of that sector? For instance, the GDP contribution of the financial ...
0
votes
1answer
698 views

What is the wealth of a company?

I would like to better understand what is the wealth of a company and what is made of. Is the wealth of a company similar to GDP of country, like a "gross company product" ? As example: can we say ...
0
votes
1answer
142 views

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 ...
5
votes
1answer
538 views

Ok to normalize GDP change by population change?

Does it make sense to normalize change in real GDP by the contemporaneous change in population? I'm interested in this calculation for the following reason. Suppose real GDP increases. I'd like to ...
0
votes
1answer
102 views

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 ...
1
vote
1answer
59 views

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 ...
1
vote
1answer
110 views

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 ...
1
vote
1answer
1k views

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 ...
1
vote
1answer
81 views

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?
0
votes
1answer
1k views

Government Spending vs. Investment Spending

What is the difference between government spending on physical capital and investment spending by government on physical capital?
-1
votes
1answer
94 views

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 ...
1
vote
2answers
7k views

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 ...
3
votes
2answers
124 views

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, ...
3
votes
1answer
2k views

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 ...
1
vote
2answers
110 views

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?
2
votes
1answer
53 views

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 ...
2
votes
1answer
788 views

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 ...
7
votes
2answers
168 views

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 ...
5
votes
1answer
109 views

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 ...