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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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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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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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 ...
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107 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 ...
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56 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 ...
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879 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 ...
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1answer
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Estimation of the future growth of real GDP per capita of the world

From 60's to 70's, the real GDP growth per capita of the world fluctuated about 3%. Since then, it fluctuated about 1.8% or somewhere around. (I mean, the average would be about 1.8% since 1970.) I ...
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Do recessions matter?

One common definition of recession is "two consecutive quarters of negative GDP growth". GDP growth affects other variables, such as stock prices, interest rates, unemployment, and personal income. ...
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Discrepancy of GDP and International Transaction Releases for Exports

The Bureau of Economic Analysis ("BEA") provides consolidated data from several different government agencies. Currently they provide exports under both a Gross Domestic Product ("GDP") release as ...
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42 views

Positive effects of a Tunisia-EU free trade agreement?

Tunisia might be signing a free trade agreement with the EU very soon. It's called ALECA or DCFTA. Many activists and labor unions are opposing such an agreement because it would result in losing ...
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153 views

How can the “Share of merchandise imports at current PPPs” be negative?

I'm looking at the Penn World Table 9.0 data, and find that the "Share of merchandise imports at current PPPs" (csh_m) can be negative. For example, ...
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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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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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542 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)
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107 views

Two ways of calculating real GDP: do they produce the same result?

My professor gave us two formulas for GDP for 2012 in 2010 dollars: y = P1 (2010) * Q1 (2012) + P2 (2010) * Q2 (2012) ... And: ...
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GDP and DEBT/GDP ratio of a Nation [closed]

Imagine following tiny nation. It consist only of 100 people running a car manufacturing plant. The nation imports every resource it needs for manufacturing those cars. It also imports all energy, ...
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55 views

Test Series for Stationary Process

I want to apply grangers' Test between GSDP and Electricity production in the state. The state is a newly formed in the year 2000 and hence I have only 13 data points, as mentioned below Year | ...
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122 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 ...
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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?
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In what country outside of the EU is the public sector the highest percentage of GDP?

The article Railway strikes test Macron’s reforms - French strikes states that "Mr Macron’s reform of SNCF is only part of a bigger effort to reshape the welfare state in a country where the public ...
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266 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 ...
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575 views

Why do wars increase the public debts?

This should be a very simple question for most of you, but I can't seem to get an answer so I decided to ask the question here. So please be as simple as possible and excuse my ignorance. This is a ...
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1answer
76 views

Why Chinese GDP does not correspond to Chinese GDP growth rate?

Hi all. According to google we have: China GDP 2017=12.24 trillion USD China GDP 2016=11.19 trillion USD Therefore China GDP 2017 growth rate=(12.24-11.19)/11.19=0.0938 that is approximately 9.4% ...
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59 views

International shipping services count as exports?

A Greek ship owner transports mouse traps from Albania to Japan, making every year ten million Euro in revenue and one million Euro in profits. The total value of the mouse traps he transports every ...
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57 views

What would happen to the world GDP if we run out of minerals to mine but not of sources of energy?

I was thinking about how the depletion of minerals (metals and all material we mine from the Earth) will affect the GDP of the world. I read somewhere that at the current extraction rate, we will run ...
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120 views

What accounts for the high GDP of the United States?

Wikipedia defines GDP as: Measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time. So, I take it that the total value of all goods (and ...
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3k views

What is considered a “final product” for gross domestic product?

Given a territory and a time range, the gross domestic product is the sum of all the values added. The term “value added” is open to interpretation. Since the value added of a product or service is ...
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3k views

Why is depreciation added to the GDP with the income approach?

In my economics textbook, it states that when calculating GDP using the income approach, depreciation should be added. Specifically, GDP = Employee Compensation + Taxes less subsidies on businesses + ...
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149 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 ...
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220 views

Why GDP positive growth does not decrease inflation?

My understanding is : If production increases, it would imply the amount of goods increases as well for the same amount of money available in the market. Because of this, we should see prices of goods ...
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1answer
47 views

With interest rates and inflation in the U.S. low and growth moderate, where is the money going?

Question is basically in the title. With interest rates so low for such a long period of time, I wonder where are that injected cash has gone? I realize that the economy has definetly grown quite ...
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24 views

Understanding GDP vs Real GDP

I am totally new to Economics. I have issues understanding GDP and real GDP. I have listed 3 statements below, can someone tell me if those makes sense ? GDP Gross Domestic Product is used to get an ...
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29 views

Nominal and Real GDP [closed]

If nominal GDP is, for example, \$1,620 billion in 2017 and increases to \$1,680 billion in 2018, is the growth rate 3.7%? Or does real GDP first need to be calculated using a deflator?
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142 views

GDP per capita and trade relationship

There's a lot of literature describing the relationship between growth and trade, but I'm not sure what conclusions I can draw from GDP per capita (specifically) and trade in one particular year for ...
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63 views

real gdp per capita vs real gdp

this site summarizes the difference between GDP and GDP per capita as: ...
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63 views

Is there objective evidence that the US economy is “booming”?

I realize that it's the political pundits that are saying it, but they never seem to provide evidence that the economy is "booming". The dictionary definition of "booming" is having a period of ...
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Turkish economy after 2013

Source. Why did the Turkish economy plunge after 2013? Why didn't it recover ever since?
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237 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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62 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 ...
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1answer
2k 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 ...
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2answers
8k 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 ...
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362 views

How to distinguish between nominal and real GSP growth?

What is the process used to distinguish the change in Gross Domestic Product (GDP) due to an increased output of goods and services from the change due to an increased prices? Why do we make it ...
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Does the US Bureau of Economic Analysis use the generic growth formula to calculate percent change of GDP?

My question is so basic, I'm embarrassed to ask it. (I study computational theory, not economics.) I'm looking at quarterly GDP numbers and growth rates. I've tried to arrive at the BEA's CPGDPAI ...
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26 views

Stock market in india

While economy in india is experiencing a slowdown, the stock markets are having record highs. can someone explain this dichotomy in simple language ?
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Possible “debt-to-…” ratio indicators for debt-to-economic growth relationship?

Suppose we are interested in the relationship between public or external debt and economic growth. One can look at the debt-to-GDP ratio or debt-to-export ratio. What may be other possible "debt-...
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31 views

Dimensional analysis of GDP

The GDP is sometimes given by $$ GDP=P\cdot h\cdot e \cdot F $$ Where $P$ is the Productivity, $h$ is the number of hours worked, $e$ is the employment rate and $F$ is the size of the labor force. ...
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41 views

Why salaries counted under Government expenditure in GDP

In the expenditure approach of GDP calculation, why are government employee's salary counted under Government approach while for private firms, we don't count salaries. I am unable to understand if ...
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40 views

GDP Income Approach

On the economics textbook it is written that GDP Income Approach can be calculated as: [ Compensation of Employees + Operating Surplus + Consumption of Fixed Capital + Tax on Production and Imports - ...
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201 views

About gross domestic product at factor cost

GDP at factor cost= Net value added + Depreciation. Here my question is why depreciation added to Net value added? I am confused here: Net value added = Gross value added - depreciation; so the above ...
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Generally speaking, shouldn't GDP roughly increase equivalent to population growth?

With all things being equal: shouldn't the GDP roughly increase equivalent to population growth (as a minimum, setting aside GDP increases resulting from technology, education, and all other factors). ...

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