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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6k views

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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140 views

What would happen if the entire world switched to the 4-day work week? [closed]

What would happen if the entire world switched to the 4-day work week? Specifically would someone's quality of life drop significantly in a developed or a non-developed country?
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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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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 ...
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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, ...
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5k views

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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1answer
297 views

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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1answer
8k views

Where do remittances come into play in the formula for GDP?

In the classic formula for GDP, i.e., GDP=C+I+G+X-M, where are remittances accounted for? With remittances as high as third of GDP for developing countries, I wonder how they are not explicit in this ...
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156 views

Does open source software contribute to GDP?

Does open source software contribute to the GDP of a nation? If yes then how, and how does it depend on the increase in usage? For instance, would an increase in the usage of open source software ...
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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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1answer
11k views

Correlation between CPI and GDP

What is the relationship between GDP and CPI(consumer price index)? My thinking is that if the CPI increases, this means that the market basket cost has increased, therefore, the consumer spending has ...
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149 views

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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112 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
84 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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1answer
128 views

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$. ...
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861 views

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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0answers
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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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1answer
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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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What are the books usually called for studying the computation of GDP?

What are the books usually called for studying the computation of GDP? It seems that the economics growth by Barro doesn't discuss about that.
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How do I calculate the services sector as a percentage of GDP?

Could anyone explain how I should calculate the share of services sector as a percentage of GDP? I get the numbers for US GDP from Table 3: https://www.bea.gov/system/files/2019-10/gdp3q19_adv_0.pdf ...
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101 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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643 views

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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Are debt/GDP ratios calculated with real or nominal GDP as the denominator?

As the title suggests, I would like to know whether the numbers are generally calculated with real or nominal GDP. Besides that I would also like to know whether it matters and how significant of a ...
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If all quantities produced rise by 10 percent, and all prices fall by 10 percent, which of the following occurs?

I am having a hard time deciding for this question: If all quantities produced rise by 10 percent, and all prices fall by 10 percent, which of the following occurs? A) Real GDP rises by 10 percent, ...
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Do mainstream economic models use the blank-slate view of humans?

Human capital is an important part of GDP forecasting. Do the models in use today view humans as "blank slate", meaning they can be educated to the same level, or do they take into account ...
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Is this a valid or legitimate way of comparing countries on traits and characteristics?

Country A has 16 million inhabitants and 2.000 MW of solar panel generated power, also a GDP of $50.000 per capita Country B has 160 million inhabitants and 2 MW of solar panel generated power, ...
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1answer
52 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
116 views

GDP Growth QoQ vs YoY: Why do the figures not match?

According to statista.com, US Q4 GDP growth rate was 2.6% over the economy in Q3. However, why is the annualized growth rate for the US therefore not be a sum of all 4 quarters if their definition of ...
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3answers
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GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
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2answers
444 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
50 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 ...
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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 ...
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644 views

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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1answer
5k views

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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6k views

If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring?

If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring? If the difference in deflators from year to year is continually greater than 1%, does that mean ...
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2answers
174 views

US GDP vs sub-$50/bbl oil

How would we expect US GDP to be affected by oil prices dipping into the 30-50 USD/bbl range? If you need to make additional assumptions to answer this question, please note these, but still answer ...
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2answers
312 views

Using metrics provided by FRED to identify the business cycle

I am interested to see how the "business cycle" is associated with our firms sales. The hope is that if we can show that our sales line up with the business cycle then we can make decisions ...
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1answer
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GDP Identity:Why does $\text{C+S+T = C+I+G+(X-M)}$?

$$\text{C+S+T = Y = C+I+G+(X-M)}$$ where: $\text{Y}$ is GDP $\text{C}$ is Private consumption $\text{S}$ is Private savings $\text{T}$ is net taxes $\text{I}$ is investment $\text{G}$ is ...
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1answer
111 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 ...
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1answer
48 views

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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2answers
92 views

Can the growth rate increase after a change in the base year?

Nowadays, I'm observing that the government of India is predicting much higher GDP growth for the Indian economy. I hear that the government has changed the base year, such that it is able to show a ...
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1answer
58 views

Timeline of comprehensive NIPA revisions

I have been fruitlessly searching for a list of dates of comprehensive National Income and Product Account revisions. Clues I have found so far: The Bureau of Economic Analysis website says the 1999 ...
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1answer
29 views

Congruence of GDP as calculated by production and by consumption

Here I've read the following (translated by Google) GDP can be calculated in two ways: firstly, by origin, that is, by estimating the value of all goods and services produced, and secondly by ...
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1answer
24 views

What does it mean when R&D is “3% of GDP”?

When we talk about R&D, does it mean that the final goods of R&D amount to 3% of GDP? Or does it mean that a specific nation is spending an amount of money on R&D that is equivalent to 3% ...
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1answer
56 views

How does government spending on imported goods affect GDP?

How does government spending on imported goods affect GDP? Is it first counted as government spending and then subtracted as imports? For instance, if the US government buy a new accounting system ...
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1answer
66 views

Relevance of government liabilities to GDP

After Malaysia's national debt was [reassessed][1], its totaled $250bn along with other government liabilities. Now, I'm having trouble understanding the direct relevance of the ratio of goverment ...
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2answers
25 views

GDP data for the baltic states from 1988-1994

since I have to write a paper on transformation/transition processes in the baltic states (Estonia, Lithuania and Latvia), I would like to analyze GDP data from 1988 (shortly before the end of the ...
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1answer
28 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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3answers
16k 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 ...
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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 ...