This document discusses how GDP and economic growth are measured. It defines GDP as the total market value of final goods and services produced within a country in a given period of time. GDP is measured using both the expenditure approach, which sums consumption, investment, government spending, and net exports, and the income approach, which sums compensation to workers, corporate profits, proprietor's income, rents, and indirect taxes. Real GDP is used to calculate the economic growth rate by accounting for inflation. However, real GDP is not a perfect measure of economic welfare as it does not capture all factors that influence well-being.
Concept of National Income with GDP GNP NNP& NDPAnkit Singh
It is the detailed study of National Income in a macro economics of a country with the methods of its measurement and concepts related to it like Gross Domestic Product, Gross National Product, Net Domestic Product, Net National Product.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
More Related Content
Similar to Measuring GDP & Economic Growth.Macroeconomics
Concept of National Income with GDP GNP NNP& NDPAnkit Singh
It is the detailed study of National Income in a macro economics of a country with the methods of its measurement and concepts related to it like Gross Domestic Product, Gross National Product, Net Domestic Product, Net National Product.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. Gross Domestic Product
GDP Defined:
GDP or gross domestic product, is the market
value of all final goods and services produced
within a country in a given time period.
3. THE MEASUREMENT OF
GROSS DOMESTIC PRODUCT
“GDP is the Market Value . . .”
Output is valued at market prices.
“. . . Of All Final . . .”
It records only the value of final goods, not
intermediate goods (the value is counted only
once).
Hallmark Card: Paper is an intermediate good.
“. . . Goods and Services . . . “
It includes both tangible goods (food, clothing,
cars) and intangible services (haircuts,
housecleaning, doctor visits).
4. THE MEASUREMENT OF
GROSS DOMESTIC PRODUCT
“. . . Produced . . .”
It includes goods and services currently
produced, not transactions involving goods
produced in the past.
“ . . . Within a Country . . .”
It measures the value of production within the
geographic confines of a country.
5. THE MEASUREMENT OF GROSS
DOMESTIC PRODUCT
“. . . In a Given Period of Time.”
It measures the value of production that takes
place within a specific interval of time, usually a
year or a quarter.
GDP includes all items produced in the
economy and sold legally in markets.
7. Measuring GDP
The Expenditure Approach
The expenditure approach measures GDP as
the sum of consumption expenditure, investment,
government expenditures on goods and services,
and net exports.
GDP = C + I + G + X M
8. Components of Expenditure approach
Personal consumption expenditures (C) includes purchases for durable
consumer goods, which are goods that have an expected lifetime exceeding
1 year, such as automobiles, household appliances, and electronic
equipment; nondurable consumer goods are goods with an expected lifetime
of 1 year or less, such as food and toiletries, and consumer expenditures
for services, such as for doctors, dentists etc. Used goods are not included in
the calculation of GDP.
Gross private domestic investment (I) includes all final purchases of
machinery, equipment, and tools by businesses; all construction; plus
changes in inventories. Investment includes residential construction, since
residential buildings can be rented out, even if they are occupied by owners.
Owner occupied residences have an imputed rent, which is added to GDP,
even though the homes are not actually rented out. The treatment of
inventories depends on if the goods are stored or if they spoil. If the goods
are stored, their value is included in GDP. If they spoil, GDP remains
unchanged. When the goods are finally sold out of inventory, they are
considered used goods (and are not counted).
9. Components of Expenditure approach
Government purchases include goods and services
that the government uses to provide public services
and expenditures for social capital, such as for
schools and highways. Government purchases
include purchases made by all government entities,
including federal, state, and local governments.
However, it does not include transfer payments, such
as the payment of Social Security or welfare benefits.
Net exports is simply equal to exports minus imports,
which is often represented by the symbol X. Note that
when the value of imports exceeds the value of
exports, then net exports is negative, and is
subtracted from the GDP.
11. Measuring GDP
The Income Approach
The income approach measures GDP by
summing the incomes that firms pay
households for the services of the factors of
production they hire—wages for labor, interest
for capital, rent for land, and profit for
entrepreneurship.
12. The Income approach to measure
GDP
The National Income and Product Accounts divide
incomes into two big categories:
1. Compensation of employees
2. Net operating surplus
Compensation of employees is the payment for
labor services. It includes net wages and salaries
(called “take-home pay”) that workers receive plus
taxes withheld on earnings plus fringe benefits such
as Social Security and pension fund contributions.
Net operating surplus is the sum of all other factor
incomes. It has four components: net interest,
rental income, corporate profits, and proprietors’
income.
13. The Income approach to measure
GDP
Net interest is the interest households receive on loans they make
minus the interest households pay on their own borrowing.
Rental income is the payment for the use of land and other rented
resources.
Corporate profits are the profits of corporations, some of which are
paid to households in the form of dividends and some of which are
retained by corporations as undistributed profits. They are all
income.
Proprietors’ income is the income earned by the owner-operator of
a business, which includes compensation for the owner’s labor, the
use of the owner’s capital, and profit.
Adding all of these will give us Net domestic income at factor
cost.
Indirect taxes less subsidies will allow us to calculate Net domestic
income at market prices
Finally adding Depreciation and Statistical discrepancy will give us
GDP using income approach
15. Nominal and Real GDP
This increase in GDP is a combination of an
increase in production and a rise in prices.
To isolate the increase in production from the
rise in prices, we distinguish between real
GDP and nominal GDP.
18. Measuring Economic Growth
We use real GDP to calculate the economic
growth rate.
The economic growth rate is the percentage
change in the quantity of goods and services
produced from one year to the next.
We measure economic growth so we can make:
Economic welfare comparisons
International comparisons
Business cycle forecasts
19. Do GDP really measure Economic
Growth?
Real GDP is not a perfect measure of economic
welfare for seven reasons:
1. Quality improvements tend to be neglected in
calculating real GDP, so the inflation rate is
overestimated and real GDP is underestimated.
2. Real GDP does not include household
production—productive activities done in and
around the house by members of the household.
20. Measuring Economic Growth
3. Real GDP, as measured, omits the
underground economy, which is illegal economic
activity or legal economic activity that goes
unreported for tax avoidance reasons.
4. Health and life expectancy are not directly
included in real GDP.
5. Leisure time, a valuable component of an
individual’s welfare, is not included in real GDP.
6. Environmental damage is not deducted from
real GDP.
7. Political freedom and social justice are not
included in real GDP.