THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.

1. MACRO-ECONOMICS
GROUP MEMBERS:
 KASHIF
 MURTAZA
 AWAIS
 KARIM BUX
PRESENTED TO: MADAM MARIA SHABBIR SHAIKH

2. TOPICS:
 GDP
 GNP
 NDP
 NNP
 REAL GDP
 NOMINAL GDP
 GDP DEFLATOR

3. PRESENTED BY: AWAIS
TOPIC : GDP

4. WHAT IS GDP:
Total market value of the goods and services produced
by a country's economy during a specified period of
time.

5.  Sales of goods that were produced outside our
domestic borders.
 Sales of used goods.
 Illegal sales of goods and services (which we call the
black market).
 Transfer payments made by the government
 Intermediate goods that are used to produce other final
goods.
What's Not Included in the GDP:

6. FORMULA OF GDP:
GDP=C+I+G+(X-M)

7.  C=(consumption) is consisting of private expenditures (household
final consumption expenditure) in the economy.
 I=(investment) includes business investment in equipment, but does
not include exchanges of existing assets.
COMPONENTS OF GDP FORMULA:

8.  G=( government spending ) is the sum of government
expenditures on final goods and services.
 X=(the amount a country produces, including goods and
services produced for other nations’ consumption.

9.  M=(Imports are subtracted imported goods will be included in the
terms “G”, “I”, or “C”, and must be deducted to avoid counting
foreign supply as domestic.

10. NDP equals the gross domestic product minus
depreciation on a country's capital goods.
WHAT IS NDP:
capital that has been consumed over the year in
the form of housing, vehicle, or machinery.

11. NDP FORMULA:
NDP = Gross domestic product (GDP) - Depreciation
WHAT IS DEPRECIATION:
A reduction in the value of an asset over time.

12. WHY GDP IMPORTANT:
If the country is not able to replace the capital stock lost
through depreciation, then GDP will fall.

13. PRESENTED BY: MURTAZA
TOPIC: GNP

14. WHAT IS GNP:
Gross national product (GNP) is an estimate of total value of all the
final products and services produced in a given period by the means of
production owned by a country's residents.

15. Formulas of GNP:
GNP = C + I + G + X + Z.
GNP = Consumption + Investment + Government + X (net exports, or imports
minus exports) + Z (net income earned by domestic residents from overseas
investments - net income earned by foreign residents from domestic
investments.)

16. EXAMPLES OF GNP:
 GNP=Money value of every thing produced with in Pakistan +
incoming money from out side (Pakistan) – out going money
to abroad (foreigners)
 Atif aslam goes to India earn money send Pakistan
(will be added in our own GNP)….
 Priyanka copra goes to America earn money send India
(will be add in own GNP)…..

17. the total value of a nation's annual output of goods and services
minus the value of capital goods used up in the production of this
output.
NET NATIONAL PRODUCT:

18. NNP = Gross National Product - Depreciation
NNP is a measure of how much a country can consume in
a given period.
FORMULA OF NNP:

19. PRESENTED BY: KASHIF
TOPIC: GDP DEFLATOR

20. Real GDP is a measurement of economic output that
accounts for the effect of constant prices
WHAT IS REAL GDP:
FORMULA OF REAL GDP:
REAL GDP= Q X P (CONSTANT PRICES)

21. Nominal GDP, or gross domestic product, measures the value of
all finished goods and services produced by a country at their
current market prices
WHAT IS NOMINAL GDP:
FORMULA OF NOMINAL GDP:
NOMINAL GDP= Q X P (CURRENT PRICES)

22. The GDP price deflator is an economic measure of inflation and is
derived by dividing nominal GDP by real GDP, and then multiplying by
100.
GDP DEFLATOR:
FORMULA OF GDP DEFLATOR:
GDP DEFLATOR= NOMINAL GDP/ REAL GDP X100