# Tag Info

### Why do we need to "get the economy moving again"?

Both Alice and Kate have bills to pay, regardless of whether they are earning money or not. Restaurants and salons have to pay rent and maintenance on their properties whether they are in business or ...
Accepted

### Why are imports subtracted from GDP?

When we import something, we consume it. So when calculating consumption we are bound to count import as a positive component of GDP. Since it is not (we did not produce imports domestically), we ...
• 1,641
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### What Level of Government Debt to GDP Ratio is Sustainable?

As you have pointed out: where it comes from is very important. As to the Japanese situation it is quiet different from the US position from example. In fact most of the Japanese debt is owned by ...
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### Why are "transfer payments" not part of GDP?

Transfer payments aren't included in GDP to prevent double-counting. The reason the author's question is troubling you is because the answer externalizes everything that happens after the payment ...
• 186
Accepted

### How can I best estimate a company's contribution to GDP?

As a comment noted, value-added is the way to go. And how do we measure value added at the level of an individual firm? It is \text{Value-added} = \text{Wages and Salaries incl. Insurance}+\text{...
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### How would gross world product look like if fossil fuel is treated as capital and not as income?

There is a large literature considering the depletion of natural resources, including fossil fuels, in relation to GDP. Some writers explicitly refer to such resources as a kind of natural capital. ...
• 6,693
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### How is the GDP growing when nothing else seems to be?

There's a bit to unpack here. Consistent wage growth seems in line with rising GDP. So does a steadily falling unemployment rate. For other economic measures, the stock market is a whole other ...
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### GDP doesn't add up in FED data - why?

It is because you are using wrong data, in fact the two series you plot never overlap save for some crossing points, and given you are using wrong datasets its actually weird why they follow each ...
• 41.5k
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### Financial investment in the composition of GDP

What you're describing is a change in the capital account, not in GDP. They're related through the balance of payments, in that if a country is running a current account deficit (usually arising ...
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### On the relationship between income distribution and GDP

While this is too broad a field and any study done on this would involve an extent of speculation. However the work by Berg and Ostry in this work have concluded the following Do societies inevitably ...
• 316