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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20 views

Does GDP Income Approach hold?

Let me introduce my question with an example. There is a company producing cars. $20$ cars are produced, with a value market of $20000u$. $\textrm{GDP} = 20\cdot20000u = 400000u$. Assume that the ...
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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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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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743 views

Increase in per capita GDP always means GDP is growing?

This question was asked in very popular civil services examination. Question is : Whether the following statement is correct or not? Statement : If a country is experiencing increase in its per-...
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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 ...
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Why did non-seasonally adjusted gdp usually drops on Q4 and Q1?

Yesterday, i stumble upon some of my country macroeconomic data, and i found some interesting pattern on quarter-on-quarter gdp growth, almost every Q4 and Q1 has a negative growth. After checking ...
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Is personal produce counted in GDP?

Good day. And sorry if it's a stupid question. I came across a question on another q&a site earlier today. It was about a hypothetical scenario. The question was if everyone in a nation becomes ...
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Why is the Stock Market Cap / GDP ratio on FRED well out of date?

FRED posts the Buffet Ratio here: https://fred.stlouisfed.org/series/DDDM01USA156NWDB But it ends in 2017, anyone know why?
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Inflation vs GDP growth as factors driving down the US debt-to-GDP ration post-WW2

I'm trying to figure out how much inflation (vs GDP growth) shrank the debt-to-GDP ratio (in the decade or so) post-WW2 in the US. I found one paper that says: In 1946, the debt ratio was 108.6 ...
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Assumptions in GDP calculation

The standard approaches for calculating GDP are: $$ \text{GDP} = \text{Consumer Spending + Capital Investments + Govt. Spending + Net Exports} $$ And $$ \text{GDP} = \text{Total wages + Profits + ...
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Why do expectations of inflation decrease SRAS (Short Run Aggregate supply)?

If firms and workers expect the prices to rise, the short run aggregate supply will shift to the left to SRAS2. (https://www.albert.io/blog/what-shifts-aggregate-demand-and-supply-ap-macroeconomics-...
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If you charge a single (indirect) tax rate, x% on all goods and services in a country, will you get x% back as tax revenues?

Assuming 100% compliance and no leakages, will charging a single tax rate of, say, 10% give us back 10% of the GDP back as tax revenues? What could these leakages be in real life that reduce this?
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Do I understand correctly that taxation-based government expenditures allow GDP to grow?

Suppose (it's an example) GDP= $1 000 000, Marginal Propencity to Consume(MPC)=0.25, that borrowing money is an absolute taboo for our government and that said government wants to increase GDP. What ...
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What does poorest country by population mean?

I understand poorest countries based on GDP but what does poorest countries by population mean? Below is the link to the information I was looking at. http://worldpopulationreview.com/countries/...
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Why does the US have public debt if they make more than that annually?

Probably a dumb question: I know next to nothing about economics and I'm just trying to make sense of what I'm trying to learn. So, I've been looking into GDP lately, trying to understand what it ...
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Name for a tax that captures all goods and services produced?

Is there a name for a consumption tax that basically captures the GDP (all goods and services produced in the nation)?
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What is low unemployment and low gdp growth symptomatic of?

Obviously there are caveats with GDP, if you build a bridge to nowhere it counts as GDP, but if you mow your own lawn or volunteer to pick up garbage it doesn't count, and so forth and so on. However, ...
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best books about GDP [closed]

i would appreciate titles on GDP--academic and lay. ty
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Predicting GDP contribution from market share

I want to find the GDP share of several companies, but I have their market share. Now we know that these two are not equal, and the market share to GDP ratio represents general overvaluation or ...
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Public Debt as Percent of GDP

My question relates to calculation total debt as percent of GDP (quarterly). Since debt is a stock and GDP is a flow, I can understand calculation it on an annual basis but not quarterly.
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How to calculate gdp of a company during promotion and loss? [closed]

Suppose a company is selling a good worthy of 200 dollars, but it was charging it for 100 dollars intending for promotion. And the company have to pay salaries of $200 per good, so it loses 100 ...
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Are government income and government employee wages counted in GDP? (income approach) [closed]

The Wikipedia article does not include it nor exclude it.
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Why is the consumption line and 45degree line's intersection not the equilibrium income level?

The question is as below The answer is A. I understand why it is A, but do not understand why it isn't C. Doesn't the point where the consumption line and 45 degrees line intersect represents the ...
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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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How does FRED Quarterly Real Gross Domestic Product and USA GDP growth rate match?

https://fred.stlouisfed.org/series/ND000334Q From this not seasonally adjusted data, Q2 GDP merely dropped 1-4305/4674=8% QoQ? What makes this number to be so different from the 32.9% decline they ...
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Second-hand products in GDP

I am aware that secondhand goods are not counted in GDP due to double counting issues, but I want to ask about a specific case of transaction of second-hand goods. For instance, what if a student ...
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How to solve duplicate couples error in unbalanced dataset

I am trying to perform a regression on unbalanced panel data in R. In order to set the data as panel data, I use the following code: ...
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Does the investment component of GDP (demand side) identity include expenditures by the government and households?

In the identity GDP=C+I+G+(X-M) does "I" include expenditures by the government and households? For example, if a construction firm builds new residential properties and a household buys this ...
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what is potencial GDP?

The Wikipedia defines potencial GDP as "the total capacity of a nation to produce goods and services". If this definition is correct than the potential GDP can only occur when the unemployment rate is ...
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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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Shouldn't national Stock Indices proportional to GDP of the country?

I was looking at Japan: Japan's GDP trajectory and Nikkei 225. It seems from 2011 - 2015 the GDP contracted but the Nikkei has gone up. Would there be a good explanation for this ?
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If a Chinese person wants to buy an iPhone or any international goods, which GDP per capita would be a better indicator?

Which GDP per capita of a Chinese citizen would better reflect their affordability- Nominal GDP per capita or PPP GDP per capita of China? My question is would PPP would matter much in case of buying ...
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Why is it important to look at all three different ways when looking at the macroeconomy of a country?

we have and use three different ways of deriving the Gross Domestic Product namely Output, Income, and Expenditure (or final consumption) methods but why is it important to view the GDP from all three ...
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Are my conclusions correct in context of these examples of forceful extraction of money?

There are two examples, one for a bandit, the another one is for the government. Suppose we have a simple economy, a bandit and a teacher. The teacher can teach the bandit, but the bandit can't offer ...
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GDP(Expenditure view of GDP): /Why aren't investments categorized as non-final goods?

My understanding is that consumption = consumption of final goods = whatever consumers buy from companies (with an adjustment for export-import-process + maybe housing is slightly different (not ...
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Do I make correct conclusions about international trade (and ways to increase GDP) from the expedenture approach formula for GDP?

(Please correct me if my reasoning is wrong somewhere) Net Exports is a part of GDP and consequently its increase or a decrease also causes GDP to increase or decrease, assuming everything else stays ...
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Value Added Approach of GDP calculation

Suppose I sell bread loaf for 20 dollars, the cost of raw material like oil,flour,electricity.... is 13 dollar, I pay 2 dollars to my workers, 1 dollar to transportation company to transport it to ...
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Purchasing power of currency abroad

Say you have two countries A and B. Suppose we have a situation where country A's currency can purchase much more in country B than the other way round. What causes this phenomenen? Is it possible ...
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Taxes and GDP, where do these come in in the formula?

We all know that the formula for GDP I'd given by GDP = C + I + G + NX I would like to know, whether I am right in deducing that when consumers and industry pay taxes, or when there are import and ...
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511 views

How can I adjust the base year of this price index?

I am given the following data for GDP deflator: 1997: 100.0 1998: 100.8 1999: 102.5 2000: 109.9 2001: 112.5 2002: 115.9 2003: 119.7 2004: 122.1 2005: 126.5 ...and so on. Currently, 1997 is ...
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562 views

How can intermediate goods and final goods be differentiated?

The calculation of GDP(using expenditures) is: $C+I+G+Xn$, where we calculate the spending on final goods and services within a country. However, how exactly are final and intermediate goods ...
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249 views

GDP Calculation and treatment of Personal Savings

While calculating GDP of nation, how personal savings which is not invested in economy or has become part mandatory reserve ratio of government is treated? Similarly do we include import and export of ...
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rates vs. level

For my thesis I will run some regression (OLS and ML: Probit). I like to distingish between variables in growth rates and variables in level form, if there is any important issue that I have to ...
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GDP versus GNP. Which is a better gauge of a country's economy size and prosperity?

Country A's GDP is larger than Country B's GDP. However, Country B's GNP is larger than Country A's GNP. Which country has a stronger economy? Which country's citizens is more likely to enjoy ...
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Difference between GDP and GNI in this exercise

Based on domestic production we observe the following income flows in a period: labor income of domestic residents: 150\$ capital income received by foreign residents with a foreign ...
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What is used more: economic growth rate compared to previous quarter (GPSA), or growth rate compared to the same quarter of the previous year (GYSA)

For my thesis I'm writing about the Baltic states and why they didn't vote out their incumbent governments despite undergoing severe austerity. As part of that I'm looking at their growth rates from ...
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When the base year changes, does it affect data at current prices as well?

I'm trying to collect current GDP data for India from 1990-2016. But, India changed its base year in 2011. So, to get a continuous series, do I have to change the data to a common base?
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GDP in expenditure approach

GDP calculated using expenditure apporach is like this: GDP=C+I+G+(X-M) However on this site: http://www.singstat.gov.sg/statistics/visualising-data/charts/share-of-gdp-by-expenditure The data is ...
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How can two countries of roughly the same size, population and GDP have such big differences in minimum wage?

We could answer this question theoretically, or give a real-world example of two such countries. Is there anything more interesting to say than: that's just something decided by the government? Could ...
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Confusion regarding debt to GDP ratio

While looking at debt to GDP ratio of various countries, I had difficulty with different figures on different websites. Look at this which shows China's debt to GDP ratio as 43.9%: http://www....

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