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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177 views

Can a spending freeze solve the problem of the Italian enormous government debt?

In view of the upcoming Italian general election, I've been reading the program of a party (please let me know in the comments whether I can/should mention its name), and in a section of it they ...
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58 views

Microeconomics of GDP

Macroeconomists tend to study GDP in terms of macro variables. Microeconomists study general equilibrium (among other thinga of course). Is there theory about the relation between general ...
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1k views

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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65 views

Relation $\Delta Unemployment$ and $\Delta GDPgrowth$

I have studied the development of the difference in unemployment and the difference in the growth of real GDP in the Netherlands over the years 1963-2016. From the picture it seems like a change in ...
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30 views

Public debt and GDP in post-socialistic countries

Why is public debt in % of GDP in post-socialistic countries of Eastern Europe is less than in countries of Western Europe. Some arguments, opinions or articles?
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348 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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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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100 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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83 views

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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164 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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51 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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827 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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356 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 ...
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243 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 ...
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147 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 ...
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84 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?
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816 views

How can Aggregate Supply = National Income

I have researched two seemingly contradictory definitions for Aggregate Supply, and I don't know how to reconcile them: The total level of income in an economy over a given period of time. or The ...
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396 views

How Does GDP Differ From NNW as an economic measure?

When people talk about the size of an economy, they often refer to the GDP or changes to it, but seldom refer to the Net National Wealth. Obviously there are some superficial differences: GDP is ...
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840 views

Value of Used Goods in GDP

Why do sale of used goods do not add to income of a country in a particular year? If you think of income as the inflow in your bank account. All outflows are just expenditures. So I think of income as ...
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Historically has the “decoupling” of world trade from GDP not lead to (or deepened) a recession?

The ECB speaks (somewhat euphemistically, in my opinion) of a "decoupling" of world trade from "activity" (i.e. GDP) in Q1 2019: Historically, has it been the case that such a "decoupling" can last, ...
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36 views

Does consumption decrease directly lead to a shift in Aggregate Demand curve to the left?

Studying macroeconomics I began to wonder about the validity of a certain statement that I couldn't find a clear answer to: "When Consumption decreases, Aggregate Demand curve will shift to the left....
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29 views

Convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for a number of countries

Which conversion factor / formula should be used to convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for different countries? I have found an identical question, but without a clear, ...
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75 views

How do government purchases crowd out the private sector?

I am curious about how government purchases crowd out the private sector (if it does). If we look at a graph of the composition of US GDP, it seems that government purchases and investment are ...
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2answers
40 views

Unsure how to go about computing GDP for the following problem

I came across this question where the GDP for the years 1995-1997 is given. Then I was asked to compute the growth rate every year which I'm aware of.The next question was to compute the average which ...
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46 views

'Taxes less subsidies' included in income approach of GDP

Why is 'taxes less subsidies' a part of the calculation of GDP (income approach)? Is it because in the expenditure method of GDP, consumption expenditure will exceed those of the total "wages and ...
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135 views

How large is the Underground Economy in the U.S

How large is the Underground Economy in the US, and is it growing or getting smaller as a percent of GDP?
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Economic history/geography of the UK (1960-today)

I am not an economist and I am looking for reference knowledge about how the economy of the UK (mainly focussing on England/Scotland/Wales) developed over the past 5 decades. The kind of information I ...
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Relation between growth rate of GDP and real interest rate for sustainable debt-to-GDP ratio

Why is the relation between the growth rate of GDP and the real interest rate important for sustaining the government the debt-to-GDP ratio ?
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Why Does National Data Usually Cite Average Income Rather than Median Income?

When I try to look into standard of living in a given country, I try to find median income figures. I can almost never find them. Instead, all of the data I can find is about average income, GDP per ...
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879 views

Will an increase in interest rate cause short run aggregate supply to shift?

Most business borrow for financing their purchases of raw material and capital etc. Shouldn't a interest rate rise cause cost of production to increase, therefore shifting SRAS to left? Thanks in ...
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28 views

How GDP by expenditure and GDP by income method are same in this case?

Suppose I earn factor wage ₹1000 in the year 2018 and I pay a tax of ₹100 to the government. So GDP by income method is ₹1000 as we ignore transfer payments. Now if I spent all my 900 on domestic ...
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64 views

Is there any ranking of countries based on per-capita expenditure in R&D?

All the rankings available on the internet are "R&D expenditure by % of GDP". Is there any ranking of countries based on per-capita expenditure in R&D?
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49 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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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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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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172 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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375 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?
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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 ...
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The period of the business cycle in which the real GDP is increasing is called the?

The period of the business cycle in which the real GDP is increasing is called the? And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going ...
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Influence of a TTIP on the GDP of a european country

So my question is simple but what I would like to know is if my method of calculating something like that plausible or not. So it goes like this : the formula we took at lecture for calculating is ...
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406 views

Interpretation of the Impulse Response Function

I have an IRF that shows the GDP shock to GDP. Let's say I have a 5-year forecast of GDP. If there is an immediate 1% decrease in GDP today, can I adjust the original 5-year forecast by using the IRF?...
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Debt bearing capacity

In times of low yields and the prospect of rising yields, I asked myself if the european countries can ceteris-paribus cope with rising yields. Is there a way to calculate the effect of rising yields (...
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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 ...
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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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German economic growth in 20th century

I have question regarding this great animation: Animation: The World’s 10 Largest Economies by GDP (1960-Today) Why did Germany GDP shrink so much from 1995 to 2000, while US was still growing very ...
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760 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 ...
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Does a drop in GDP per capita, with the population staying around the same, mean people on average are poorer?

Essentially, I'm trying to determine if there is a correlation between a drop in GDP per capita (e.g. during the 2008 financial crisis, Australia's GDP per capita dropped from USD \$49,000 to $42,000 ...
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109 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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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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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 ...