GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATORSelf-employed
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.
GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATORSelf-employed
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.
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product, gross national product, net national income, and adjusted national income
It describe about GDP and its components. Different branches of GDP and their components, also describing their difference and formula. Uses of GDP, arguments against GDP are discussed briefly.
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product, gross national product, net national income, and adjusted national income
It describe about GDP and its components. Different branches of GDP and their components, also describing their difference and formula. Uses of GDP, arguments against GDP are discussed briefly.
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman,.docxmccormicknadine86
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman, Ph.D.
GDP Measures
GDP is Gross Domestic Product
GDP is the value of all final goods and services produced within a country’s borders by its own citizens or foreign citizens in a given time period.
GNP is Gross National Product
GNP is the value of all final goods and services produced by a country’s citizens within the country’s borders or in foreign lands in a given time period. http://www.diffen.com/difference/GDP_vs_GNP
Intermediate goods are used to produce other goods. For example, when Pizza Hut buys cheese to produce pizzas, the cheese is an intermediate good.
Final goods are purchased by the end user. When the Lyman household purchases cheese, the cheese is a final good.
GDP is represented by the variable Y in macroeconomic calculations.
The formula for GDP is:
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M).
Consumption (durable and non-durable goods and services for individual household consumption)
Investment (Consumption of new physical capital and new housing such as factories, machines, tools, transportation systems, new houses, etc.) Investment is purchased using financial capital instruments.
Government expenditures (all Federal, State, and Local government purchases from paper clips to aircraft carriers).
Net Exports (Trade Balance=Exports-Imports)
Macroeconomic Measures introduces the student to 3 different methods of measuring GDP:
1.the incomes approach (simplified circular flow model-resource flow approach)
2.the expenditures approach (simplified circular flow model (D) money flow approach)
3.the output approach (simplified circular flow model (S) product flow approach).
Incomes Approach (Input/resource approach)
GDP (also known as national income which is indicated by Y) is equal to the inputs used in the production process. The inputs include:
land in the form of rent
labor in the form of wages
capital in the form of interest
entrepreneurship in the form of profit.
Y = rent + wages + interest + profit.
Expenditures Approach (Demand side approach)
GDP (also known as aggregate demand (AD) which is indicated by Y) is equal to the total output demanded in the economy. The outputs include:
consumption
investment
government expenditures
net exports
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M)
Output Approach (Supply side approach)
GDP (also known as national output which is indicated by Y) is equal to the outputs supplied to the economy. The outputs include:
household goods (durable and nondurable goods and services)
investment goods (new housing and capital)
government (durable and nondurable goods and services)
net exports (goods for export minus goods imported)
Y = Household (C) + Firm and HH (I) + (G) + Net Exports (X-M)
The Keynesian Consumption (Spending) Multiplier
The Keynesian Consumption Multiplier is based on the assumption that for each additional dollar a household receives some ...