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
3
votes
1answer
180 views

Do products which are only produced and consumed locally contribute to GDP value?

According to Wikipedia: Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal ...
3
votes
1answer
576 views

Financial investment in the composition of GDP

In the production function Y = C + I + G + NX Does foreign investment in domestic assets (i.e. foreign buying of domestic bonds) - and vice versa - come under the Net Exports variable? Which ...
3
votes
1answer
1k 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 ...
3
votes
1answer
4k 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?
3
votes
1answer
7k 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 ...
3
votes
1answer
141 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?
3
votes
1answer
274 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 ...
3
votes
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 ...
3
votes
2answers
45 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 ...
3
votes
2answers
130 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
2answers
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 ...
3
votes
1answer
307 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 ...
3
votes
1answer
10k 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 ...
3
votes
2answers
101 views

Why GDP series always has an unit root problem?

In one of the lecture slides of class that I am currently taking our professor mentioned that when it comes to the GDP is it safe to always assume it has unit root and testing for it is just ...
3
votes
4answers
22k 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 ...
3
votes
1answer
6k views

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 ...
3
votes
1answer
12k 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 ...
3
votes
3answers
165 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 ...
3
votes
1answer
129 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?
3
votes
1answer
107 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%,...
3
votes
1answer
13k 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 ...
3
votes
1answer
129 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$. ...
3
votes
0answers
80 views

Why couldn't India grow its economy as fast as China did?

I was listening to this debate on India vs China. Professor Dr. Kishore Mahbubani posed this question (watch from 17:21). Let us see the following graph: India has a population comparable to China. ...
3
votes
3answers
876 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 ...
3
votes
0answers
1k views

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 ...
3
votes
1answer
39 views

An easy GDP growth question

A woman pays her gardener £60 per year and later married him. The gardener continues to work in the garden but unpaid. The woman earns £1000 before and after the marriage. Statement: the marriage ...
3
votes
1answer
31 views

What is the effect on GDP when foreigners buy lots of domestic bonds?

I am trying to figure out the effect on GDP of foreigners buying lots of domestic bonds. From what I understand, when foreigners buy lots of domestic bonds: They need to convert their foreign ...
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 ...
2
votes
2answers
73 views

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.
2
votes
2answers
34 views

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 ...
2
votes
1answer
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 ...
2
votes
2answers
780 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). ...
2
votes
2answers
2k views

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 ...
2
votes
2answers
7k views

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, ...
2
votes
1answer
29 views

What does 'Health spending as a share of GDP' mean?

I am watching a video essay talking about healthcare spending in different countries and one of the first graphs shown was titled: 'Health spending as a share of GDP'. After doing some reading, I ...
2
votes
1answer
43 views

Why does the answer not include increased negative unplanned stock investment?

I will focus on the event "c": The answer for "c" is following: A sharp increase in the rate of real GDP growth leads to a higher level of planned investment spending by producers, according to ...
2
votes
2answers
47 views

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 ...
2
votes
2answers
35 views

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, ...
2
votes
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 ...
2
votes
1answer
36 views

Are the EU funds coming from EU citizen's taxes as well?

I was trying to understand how the EU is funded using their official website, but my limited understanding of economy makes it very hard to understand the money pathways from a single unit (the ...
2
votes
1answer
41 views

Why don't we count incomes of the government from taxation when calculating GDP using the income approach?

According to the income approach GDP is equal to wages + rent + interest + profit, income from taxes isn't included. The government provides people and organizations with public goods (like roads and ...
2
votes
1answer
157 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 ...
2
votes
3answers
70 views

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-...
2
votes
2answers
492 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?
2
votes
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 ...
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
2answers
658 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 ...
2
votes
1answer
6k 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.
2
votes
1answer
7k 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 ...
2
votes
2answers
176 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 ...

1
2
3 4 5
8