GDP and Economic Indicators
"Gross Domestic Product and other economic indicators"
GDP and other economic indicators
Q.1) Define:
Gross Domestic product:
Gross domestic product is the value of all the good and services of a particular country which is produced over a year's time. For the value to be accurate it is made sure that all the goods and services included are the ones produced inside the boundaries of the country. The goods and services may be produced by the nationals of that country and by the foreigners in that country, but the production has to be inside the boundaries of the country. The formula to calculate GDP includes five components which are the consumption by households (denoted by C), the government spending done (denoted by G), the investment done in the country (denoted by I), the imports that were done in that year (denoted by M) and the exports of that particular year (denoted by X). The formula is: GDP = C + I + G + (X - M). The basic reason for finding the GDP is to analyze how strong a country's economy is locally.
2. Real GDP:
The value of GDP that comes may always show an increase but the increase is not accurate as a certain percentage of inflation (increase in price level) might have taken place that year. Real GDP shows the inflation adjusted amount of GDP so the accurate increase or decrease in GDP can be calculated as compared to the year before, or a certain base year that is selected.
3. Nominal GDP:
The calculation of GDP without adjusting for inflation is called Nominal GDP....
Gross Domestic Product (GDP) is the total value of goods and services produced in a country over a period of time. Most economists consider it to be the broadest indicator of a country's economic health. In the United States too, the GDP has been adopted as a key measure of economic activity since the early 1990s and the U.S. Bureau of Economic Analysis (BEA) regularly releases detailed GDP figures that
Gross Domestic Product (GDP) GDP or the Gross Domestic Product of a country is one of the basic tools used to measure how well an economy is performing. It is the measure of the value or worth of the goods and services that have been produced in an economy over a set time period. It may also be classified as the size of any country's economy and can provide as
GDP does not measure growth sustainability. My country may be achieving high GDP temporarily in a sense that there is misallocation of investments or over exploitation of natural resources. However, considering that it is a basis of standard of living, market prices of commodities as well as other leisurely items may get up high but in reality it should not be the case. I may be forced to buy
The major revenue sources for government income are: the profits tax, the salaries tax and the property tax, which correspond to the three major classifications of taxes. The major expenditure sources are: transfer payments to persons, defense consumption and social security (BLS, 2007). For state governments, the revenue is generated by land and municipal taxes and the expenditure is generated by retirement and disability, other direct payments and grants.
For instance, it is possible to determine the increase or decrease in the general price levels by looking at the national income figures. National economies can use national income figures to determine how much income individuals are spending on consumption goods and hence their levels of saving. With such information, national governments can come up with ways of keeping inflation and deflation in check based on investment, saving and
Economic Indicators The change in the United States Real Gross Domestic Product (GDP) ratings has shown both ups and downs in the U.S. economy over the last two years. In the most recent quarter, the first quarter of 2011, the U.S. GDP increased over 2%. While the GDP has increased every quarter since mid-2009, the quarterly increase in each of the last four reported periods was weaker than the quarterly increase
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