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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376 views

How to calculate constant GDP in international $ from nominal GDP in local currency units

I want to calculate a constant GDP serie from 1995 till 2014 based on nominal GDP expressed in Yuan (Chinese currency). I already get stuck on how to first make a constant GDP serie based on Yuan, ...
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Questions on comparing GDP between various countries

What is the difference between OER vs PPP? What fundamentally drives them? Shouldnt an arb opportunity exist and wouldnt that difference then go away? My understanding of OER is the official nominal ...
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Why does an increase in money cause a proportionate increase in price level according to classical/neoclassical economists?

First I am not sure what classical economists say but doesn't increase in Money supply decreases interest rate and cause investment to expand and thus GDP rises. Therefore the aggregate demand ...
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How to calculate change in GDP using valued added?

Suppose that Roots buys 5 million dollars in leather produced this year in Alberta and 1 million dollars in zippers produced last year in Toronto to make 9 million dollars worth of leather jackets in ...
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Government Spending vs. Investment Spending

What is the difference between government spending on physical capital and investment spending by government on physical capital?
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GDP to employed people ration - solow swan model

Two countries A and B have identical production function $Y=AK^{1/3}N^{2/3}$, they are identical when it comes to all other factors with the exception that savings rate is $s_A>s_B$. a) What is the ...
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Why is FDI included in GDP computation but not in GNP? Similarly why is FPI included in GNP computation?

I know the difference between GDP and GNP is that the former is confined to domestic borders and the latter to nationals across the world. I also know that FPI is shorter duration and more volatile ...
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Increase in Debt / GDP positive or negative for currency?

When a nation-state and/or monetary union increase it's debt to GDP ratio. Is this a net positive or negative for its currency?
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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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Controls for a GDP per capita model

I'm constructing a model to test the relationship of some different factors on GDP per capita in a single year using simple OLS regression. Most studies I've found on economic growth simply use the ...
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Which one of these sources best represents fiscal deficit data?

I'm currently recollecting data for an econometrics model I want to build later on with a panel data model. However, sometimes it is difficult to find certain information. For example, I want to ...
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(AD-AS model) How is it possible for firms to spend less, but supply more at higher price level, assuming no increase of the SRAS?

According to the interest rate effect theory higher prices will lead to lower GDP demanded because firms will spend less due to loans being more expensive. It seems at odds with what the SRAS curve ...
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Is there an “ideal” ratio of tax revenue to GDP? Or, at least, can I assume a higher ratio is better?

At the link below, you can see countries have a huge difference in ratios of tax revenue to GDP. Is it fair to assume that a higher ratio is better? Does raising a substantial portion of your GDP in ...
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China's GDP is seven times larger than during the SARS outbreak — what's the implication for China?

I have been compiling some figures to compare China's macro conditions in 2003 and 2019. Clearly, much has changed in nearly twenty years. In particular, a few indicators really stand out. For ...
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Is it better to calculate inflation rate using GDP deflater whether based year is the first year or last year of our data?

if we wanna calculate inflation rate for years 1997 and 1998, there are 2 ways, first is set our base-year 1997 and according to my data it will be 0.39 and if we set the base-year 1998 the rate will ...
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Equilibrium in currency devaluation?

In export oriented Economy, we often come across currency devaluation as means to boost exports. As per my understanding (please correct me if I am wrong), currency devaluation will immediately bring ...
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Double counting because of gross mixed income

I was learning the income method of calculating GDP when I stumbled upon this doubt. As per the definition given in the book GDP = GDI (Gross Domestic Income) = Compensation of employees + Gross ...
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28 views

Does stagflation lead to redistribution of wealth?

Suppose there is inflation in our country, but we take a short term, thus some prices are sticky and there is non-positive "growth" of the real GDP. In other words, we experience stagflation. If I ...
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Which one of these intepretations of belonging of a factor of production is correct in context of calculating “income of our citizens abroad”?

NFFI can be calculated as income of foreigners here MINUS income of our citizens/corporations abroad. As far as I understand, it's assumed that our citizens earn income by using OUR factors of ...
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85 views

Would GDP for a pure endowment economy be equal to zero?

(Am I correct?) As far as I understand, a pure endowment economy means that good just appears in the country without any labor involved in producing them. Like maybe given country lives entirely from ...
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198 views

Why do we add Net Foreign Factor Income instead of substracting it while calculating GDP?

(It's assumed that we use the income method.) GDP is supposed to include all incomes received on territory of given country, no matter if receivers of income are citizens or not. So incomes of ...
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When calculating GDP using the income approach how do we make sure that we count only wealth produced in given year?

As far as I understand, when we calculate GDP we want to estimate wealth produced during given year in given country. But it seems like it will be problematic when using the income approach (the ...
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Where to find GDP for sub-sectors of a Nation?

I was recently doing a presentation for Economics Class in which I wanted to break down the GDP of the UAE by Emirate. I could not find anything on the internet about this, although a quick google ...
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How to calculate Real GDP from quarterly change

How do I calcualte a countries Real GDP from QoQ changes? Example - Australia 2018 - Real GDP was 1432195178668.32 $Billion 2019 Q1 was 0.5% 2019 Q2 was 0.6% 2019 Q3 was 0.4% How do I calculate ...
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What was the GDP PPP per capita of Equatorial Guinea in 2017? (very different figures according to different sources)

This list List of countries by GDP PPP per capita gives Equatorial Guinea a GDP per capita of 34,900 according to CIA and a GDP per capita of 24,817 according to World Bank in 2017. The differences ...
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How much do the concepts and methodologies of GDP, CPI, PPP overlap?

Indicators of greatest importance in macro-economics are: the gross domestic product (GDP → comparison and growth of wealth) the consumer price index (CPI → inflation rate) purchasing power parity (...
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calculate magnitude of a recession

I'm doing an exercise from Blanchard Macroeconomics where I'm, apart from other things, asked to calculate the severity of recessions in the US since 1960. The data on the webpage that's referenced is ...
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Measuring economic growth in GDP (in USD) vs Real GDP (domestic currency)

I've noticed that a lot of data online seems to measure a non-US country in USD. This seems odd to me, because doesn't that mean that US fiscal/monetary policies, politics, and economics would affect ...
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A hypothetical question on neutrality of money

Let's assume that we start with an economy producing two goods, A and B, with each priced $100. Each good is weighted using the same quantity, so CPI equals 100. Nominal wage is also 100 dollars. An ...
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Recapitalization of Banks

If a government decides to recapitalize banks then will that come under government expenditure and show up in GDP or will it be a transfer payment and stay outside the GDP? and why? In short, Is the ...
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What does it mean when we talk about “same basket” exactly for both GDP and CPI?

When we say about "the basket used for calculating the CPI is the same as the composition of GDP" What does it mean the "same basket"? Does it just mean the goods and service are the same but the ...
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Why growth of national income in current prices during inflation not measured in poor sections and poverty alleviation programs?

Here 1) dwindles means reduce, smaller. Here is my doubt: If inflation fluctuates how can we use the word 'dwindles', what it means here? 2) Why the growth rate during inflation not measured in poor ...
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Debt Held By The Public

Following off the back of this question on debt-to-GDP vs. debt held by public-to-GDP - Difference between "Debt Held by the Public" and "Total Public Debt Outstanding"?: So in ...
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How the Balassa-Samuelson affect real exchange rate?

According to standard Balassa-Samuelson effect, when the productivity increases in the tradable sector (GDP), price increase can be observed in non-tradable sector and this can lead to appreciation of ...
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23 views

Best way to measure company size relative to world GDP

I'm working o a model where corporate revenue / world GDP is a dependent variable of some stuff (based on the model proposed in this paper: http://www.scielo.br/scielo.php?pid=S1807-76922009000200002&...
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Autonomous spending

"The term $\left(c_{0}+IQ+G-c_{1}T\right)$ is that part of the demand for goods that does not depend on output here ($c_{1}$ is mpc)." Can someone please explain how will you interpret government ...
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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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Will BRICS countries be the leading innovation countries 20 years from now? [closed]

I wonder about the question given in the title. What could be arguments against this statement? Considering China and Russia: Both countries have an authoritarian political system. I claim - and ...
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4k views

Quarterly GDP growth terminology: YoY vs QoQ

Quarterly GDP growth can be calculated either in terms of YoY change or — in the case of seasonally adjusted data — in terms of QoQ change. (A third option would be to annualize the QoQ rate.) To ...
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102 views

Measuring asymmetry between countries GDP per capita

I am looking for an objective way of measuring the "asymmetry" (the overall level of difference) of the GDP per Capita in groups of countries involved in an international agreement. So far, the best ...
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2k views

Converting current to constant USD values for trade data (UN Comtrade)

I am using WB (country GDP) data in combination with UN Comtrade (bilateral trade) data. I need to divide bilateral trade by GDP so as to find out which % of a country's GDP comes from bilateral trade....
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UK GDP accounts for profits on sale of home

A house is built and sold to a family as their primary residence for £1000 in 2000. The purchase price is included in GDP for 2000. In 2001 the house is sold for £2500. The seller pays solicitors' and ...
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226 views

Why the GDP does not decrease even when we are saving from our income?

When we are saving from our income then we don't consume as mush as we earn. So the GDP should decrease as well as the income but this does not happen. Why?
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Leveraging private capital

If an ultra high networth individual, like Bill Gates, Mark Zuckerberg, Carlos Slim, Paul Allen, Elizabeth of Windsor, Amancio Ortega, Liliane Bettencourt, Stefan Persson, Bernard Arnault etc. would ...
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Gross National Income for Personal Income?

is there such a thing as the measure that amounts to roughly the aggregate of personal income for a country (say: all salaries combined) and an aggregate of corporate income. But as separate figures, ...
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Can't we measure the growth in the income levels of poor?

Inflation has been a challenging aspect of policymaking. In such situations growth in the income levels of the population living below the poverty level can never be measured accurately (due to ...
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Okun's law nominal GDP growth

Does Okun's law also work for nominal (not real) GDP growth?
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Why is Pakistan's GDP higher than Bangladesh in PPP but lower in Nominal?

Why is Pakistan's GDP higher than Bangladesh in PPP but lower in Nominal? Kindly explain in layman's terms.
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Would a zero-growth economy with zero-growth population still have the same GDP?

If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
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123 views

Isn't it pointless to care about GDP?

If I pick up a stone there and sell it to you for 1 million dollars, 1 million dollars added value is created and added to GDP. If you sell it to me for the same price, virtually nothing has happened ...

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