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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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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2k 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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147 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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77 views

Why is such a high US national debt not resulting in another great depression?

The chart below shows that US national debt as a percentage of its GDP is at an all time high excluding the one during WW-II. While I'm not as well informed in economics as most of the people on this ...
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114 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?
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782 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
41 views

Does Direct Benefit Transfers make an economy poorer?

Printing money and giving to the poor causes inflation. Increases demand and hikes prices. This is basically certain. But on the contrary, a paper titled Debunking the Stereotype of the Lazy Welfare ...
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1answer
83 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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63 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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1answer
39 views

What is it called when there is no personal increase of wealth but GDP increases because of mutual sales?

In a hypothetical situation, every person produces some product but instead of consuming it sells it to another person. This situation would increase the GDP whereas self-consumption doesn't. Say, ...
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3answers
157 views

Bananas and oranges in communist countries

This is a question I wanted to ask for a long time. If you check the GDP or East Germany in 1989 and compare it to that of banana-producing countries you can see: ...
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2answers
126 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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1answer
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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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1answer
78 views

Does national debt and its repayment assume population increase?

I assume that the repayment of an increasing national debt depends on an increasing GDP. And increasing GDP, in turn, depends mutatis mutandis on increasing population. So an increase in national ...
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2answers
63 views

What does annualised GDP shrinkage of 75% and growth of 54.6% mean?

According to Business Today (India), these are the latest figures for 2020 September 3 for GDP change in World's largest economies. In simple terms, what do GDP shrinkage of 75% and growth of 54.6% ...
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1answer
32 views

GDP Discrepancies

I'm trying to practice reading economic data from FRED and BEA websites, but they seem to be providing conflicting data that I cannot understand at all. For example, looking at Real GDP percentage ...
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23 views

Understanding GDP Chart

When I Google "GDP of 1950", I get ~$300 Billion. Looking at the graph @ https://fred.stlouisfed.org/series/GDP . I see Q1 280 billion Q2 290 billion Q3 308 billion Q4 319 billion My questions: ...
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59 views

How does the GDP multiplier work?

When we learn about the GDP multiplier, it is portrayed as 1/MPS, because savings are supposedly a leak out of consumer spending. However, what I don't understand is aren't those savings spent anyways ...
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4answers
49 views

How does capital investment (factory, plant, etc.) benefit the region they are located in?

Generally, capital investment is always good for the economy, but I am not sure about the underlying mechanism. For example, if a car factory is built in a certain state, does it improve the economy ...
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2answers
29 views

How is GDP counted between different countries?

Sorry if this question is dumb, but I did not manage to find the answer on the web. The questions is as follows: As far as I understand, GDP is the total value of a country's production. It includes ...
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1answer
199 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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2answers
232 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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1answer
47 views

What explains why Puerto Rico has much lower GNP than GDP?

I can understand why some countries like Luxembourg, Singapore, and Ireland have much lower GNP than GDP. But why is the same true for Puerto Rico? I would've thought that since lots of Puerto Ricans ...
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40 views

How can the GDP's growth rate be positive, when the GDP decreases?

I have question about following charts in Mozambique. Here is GDP of Mozambique in 2010-2016 - https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2019&locations=MZ&start=2008. You can ...
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Why does a positive output gap imply workers working overtime?

From Investopedia, "A positive output gap indicates a high demand for goods and services in an economy, which might be considered beneficial for an economy. However, the effect of excessively ...
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1answer
110 views

GDP calculation on selling house at a profit

This question may appear to be naive, however, since I am having problems understanding it, I had to resort to ask it here. How will the sale of an old house at a profit affect the GDP? Let us say I ...
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1answer
36 views

How do the factors of production map to the GDP identity?

How do the 4 factors of production (nature / capital / labour/ entrepr.) map to the GDP components in: $$Y=C+I+G+(X-M)$$ To me it seems that all factors map to all GDP components, simply because it's ...
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2answers
31 views

What does the seasonal adjustment curve for major macroeconomic metrics look like?

All the explanations of seasonal adjustment that I found from a quick search either don't give any quantitative examples, or give an example with a time series that is either made up or represents an ...
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1answer
36 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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1answer
32 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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83 views

real gdp per capita vs real gdp

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

best books about GDP [closed]

i would appreciate titles on GDP--academic and lay. ty
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66 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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1answer
43 views

Turkish economy after 2013

Source. Why did the Turkish economy plunge after 2013? Why didn't it recover ever since?
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253 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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2answers
146 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?
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1answer
65 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
9k 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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1answer
391 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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1answer
26 views

How are housing costs reflected in factor shares of GDP?

The labour share of GDP in the UK is around 55% (Source). Presumably all labour is supplied by households and all households need a house. The average percentage of total monthly household income ...
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1answer
42 views

GDP per Capita in Panel Data: Must the base year be the same for all cross-sections?

I'm trying to run a small project using time series in panel data. One of the variables used is the GDP per capita for a few countries (the countries are the cross-sections). Is there a problem if the ...
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1answer
33 views

Treatment of natural disasters and wars in consumption of fixed capital

Assets destroyed by natural disasters and wars are not included in consumption of fixed capital (CFC) in the US NIPA or the UN SNA. Suppose though that the US decided to start including such asset ...
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1answer
29 views

What is the public spending / government expenditure share of GDP in Europe?

I have found data that seems to be contradicting: statista gives public spending at country level between 40% and 60%, but eurostat gives an aggregate figure of about 20%, as shown in the following ...
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1answer
121 views

Does salary contribute to GDP under the expenditure approach?

The question really confuses me. On one hand, we can consider the wages as purchasing services from employees. On the other hand, the salary is also part of the cost of the products, thus it isn't &...
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1answer
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Is there a per country estimation of the GDP drop due to COVID?

I've been looking around for some per-country estimation of the expected GDP drop due to the COVID pandemic. I've found this answer in this site but it only mentions a few countries. I understand not ...
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2answers
49 views

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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1answer
21 views

Will the services rendered by a worker from an unorganized sector be counted in GDP?

My guess is it won't be because the unorganized sector isn't captured in GDP? but I read somewhere it will be. not sure if I am wrong or it was an error in the answer key. please help
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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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