Report in ECOLRT gdp and gnp
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Here are the answers to the quiz questions: 1. Gross National Product 2. Gross Domestic Product 3. Expenditure approach and income approach 4. C (Consumption), I (Investment), G (Government Spending), X-M (Net Exports) 5. The formula for the GDP deflator is: GDP Deflator = Nominal GDP / Real GDP
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Report in ECOLRT gdp and gnp
- 1. Economics with Land Reform and Taxation GNP and GDP Group 6 Presented by: Arvin Dominic Dela Cruz Jerrie Lloyd Peñales John Lorence Peñales Joshua Bajana
- 2. Presentation Outline 1. What does GDP stands for? 2. Definition of GDP 3. How do we measure GDP 4. Calculating GDP: The Expenditure Approach 5. Formula of GDP using Expenditure approach 6. Calculating GDP: The Income Approach
- 3. What does GDP stands for? ross omestic roduct
- 4. The total value of output of goods and services produced within an economy in a given period of time Definition of GDP
- 5. 1. Expenditure approach 2. Income approach How do we measure GDP 3. Output/ Product approach
- 6. The Expenditure approach totals annual expenditures on four categories of final goods or services: 1. Consumer goods and services 2. Business goods and services 3. Government goods and services 4. Net exports or imports of goods or services. Calculating GDP: The Expenditure Approach
- 7. Expenditures = C + I + G + (X – M) • Consumption (C) • Investment (I) • Government spending (G) • Net Exports (X-M) • Exports (X) • Imports (M) Formula of GDP using Expenditure approach
- 8. The income approach calculates GDP by adding up all the incomes in the economy. Formula for GDP (Income approach) GDP = R + I + P + SA + W R : rents I : interests P : profits SA : statistical adj. W : wages. Calculating GDP: The Income Approach
- 9. 1. Intermediate goods What are excluded in GDP? Example of Intermediate Goods: • Bricks and cement used in the construction of house • Steel used in production of cars • Wood used in furniture like sofa, dining table and so on. • Glass used for making spectacles • Vegetables used by restaurant owner • Gold and silver used for making ornaments • Cotton used for making
- 10. 1. Intermediate goods 2. Transfer payments What are excluded in GDP? Examples of certain transfer payments include • welfare (financial aid) • social security • government making subsidies for certain businesses (firms)
- 11. 1. Intermediate goods 2. Transfer payments 3. Home Production What are excluded in GDP?
- 12. 1. Intermediate goods 2. Transfer payments 3. Home Production 4. Pollution/ environmental damage 1. Illegal Goods What are excluded in GDP?
- 13. 1. Intermediate goods 2. Transfer payments 3. Home Production 4. Pollution/environm ental damage 5. Illegal Goods What are excluded in GDP? Smuggled Goods Example: Fake / Counterfeit Products
- 14. What does GDP indicate? GDP is important because it gives an indication of how successfully society is addressing the scarcity problem. A larger gross domestic product, there are more goods and services that can be used to satisfy unlimited wants and needs.
- 15. • Nominal GDP is GDP measured in current prices. It does not account for price level increases from year to year. • Real GDP is GDP expressed in constant, or unchanging, peso / dollars. Nominal GDP Adjust for Inflation Real GDP • Nominal GDP is GDP which has NOT been adjusted for Inflation. • Real GDP is GDP which has been adjusted for Inflation Nominal and Real GDP:
- 16. Nominal GDP can grow because of three reasons: Formula of Nominal GDP 1. Output (q) rises and prices remain unchanged 2. Prices (p) rise and output remains unchanged 3. Both output and prices rise Nominal GDP = (P x Q) Where: • Output (q) • Prices (p)
- 17. • The formula for real GDP is nominal GDP divided by the deflator, or • R = N/D • For example, if prices rose 2.5% since the base year, the deflator is 1.025. If the nominal GDP were 10 million, the real GDP would be 976,000 or 10,000,000/1.025 = 976,000 Formula of Real GDP
- 18. The GDP Deflator
- 19. News Related about GDP
- 20. Philippines GDP
- 21. GDP to hit 5.6% in 2015– HSBC by Bianca Cuaresma - January 9, 2015 The British-owned financial-services giant HSBC ruled out growth, measured as the gross domestic product (GDP), averaging 7 percent or better for the Philippines this year, saying that the government’s reluctance to spend in tandem with so-called institutional bottlenecks weigh heavily on the country’s appeal as investment destination.
- 22. The country’s overall economy may grow at a faster pace this year with the government likely to hike annual spending amidst nearing presidential elections in 2016. In its forecast, listed firm First Metro Investments Corp. (FMIC) forecast that the Philippines’ Gross Domestic Product (GDP) may expand to 7 percent to 7.5 percent in 2015. Home » Business » Business News » FMIC sees 7.5% GDP growth FMIC sees 7.5% GDP growth by Madelaine B. Miraflor January 7, 2015
- 23. DBCC keeps 2015 GDP target, cuts 2016 growth forecast to 7-8% By , DANESSA O. RIVERA, GMA News January 7, 2015 5:40pm Prompted by expectations the Philippines economy will miss the government target for 2014, the Development Budget Coordinating Committee (DBCC) cut the growth projection for 2016, the Budget chief said Wednesday. The committee, headed by the Budget secretary, however, kept the 7 to 8 percent target in 2015.
- 24. ross ational roduct What does GNP stands for?
- 25. The total value of final goods and services produced during a given period by the citizens of a country. Definition of GNP
- 26. How do we compute GNP GNP is calculated by adding the value of expenditure on final goods and services produced. GNP can be solved using the formula: GNP = GDP + Net factor income from abroad (difference between income earned in foreign countries by residents of a country and income earned by foreign nationals domestically).
- 27. 1. Depreciation of capital results in a loss of income to capital owners, so the amount of depreciation is subtracted from GNP. 2. Indirect business taxes reduce income to businesses, so the amount of these taxes is subtracted from GNP. How do we measure GNP GNP is one measure of national income, but a more precise measure of national income is GNP adjusted for following:
- 28. GNP helps to measure the contribution of residents of a country to the flow of goods and services within and outside the national territory. What does GNP indicate?
- 29. Similar to that of GDP (household work and illegal goods/services, etc.) What are excluded in GNP?
- 32. Quiz: Enumeration 1. What does the GNP stands for? 2. What does the GDP stands for? 3. Two approaches to measure GDP? 4. Four categories of Expenditure? 5. What is the formula for GDP deflator? (2 pts.)
Editor's Notes
- Kabuuan ng gawang katutubo o ang kabuuang domestikong produkto Sa pagsukat ng economic performance ng isang bansa ay ginagamit ang mga economic indicators. Ang Economic indicators ay ang mga instrumento upang ilahad ang anumang pag-unlad na narating ng isang ekonomya ng bansa. At isa sa mga halimbawa nito ay ang GDP.
- Ang GDP ay tumutukoy sa mga produkto at serbisyo kahit ang gumawa ay dayuhan na ginagawa sa loob ng bansa sa loob ng isang taon. Ang kita ng mga dayuhan na nagtratrabaho at namumuhunan sa loob ng bansa ay kasama sa ating GDP at hindi kabilang sa GNP.
- Consumer goods include durable goods, goods that last for a relatively long time like refrigerators, and nondurable goods, or goods that last a short period of time, like food and light bulbs. Consumer spending is the sum of expenditures by households on durable goods, nondurable goods, and services. Examples include clothing, food, and health care Investment is the sum of expenditures on capital equipment, inventories, and structures. Examples include machinery, unsold products, and housing. Government spending is the sum of expenditures by all government bodies on goods and services. Examples include naval ships and salaries to government employees. Net exports equals the difference between spending on domestic goods by foreigners and spending on foreign goods by domestic residents. In other words, net exports describes the difference between exports and imports.
- C - (on durables, non-durables, services) I - (stock-building, capital formation, housing) G - (roads, health, education, but not transfer payments)
- Ang mga intermediete goods ay mga produkto na kailangang iproseso upang maging yaring produkto, tulad ng tubo, arina, sariwang isda na gagawing sardinas at iba pa. Ang mga intermediete goods ay hindi isinasama sa pagkukuwenta upang maiwasan ang double couting na nagiging dahilan ng paglaki ng GDP.
- Nominal GDP is GDP which has NOT been adjusted for Inflation. Real GDP is GDP which has been adjusted for Inflation
- GDP deflator: is the ratio of nominal GDP to real GDP for a given year minus 1. The GDP deflator illustrates how much of the change in the GDP from a base year is reliant on changes in the price level. While Real GDP captures changes in quantities and Nominal GDP captures both changes in prices and changes in quantities, the GDP deflator captures changes in the price level.
- Ang mga kinikita ng ating mga Overseas Filipino Workers (OFWs) ay di-kabilang sa ating GDP dahil di-nanggaling sa loob ng bansa, ngunit isinasama ang mga ito sa ating GNP
- Ang GNP ay kabuuang produksiyon na nagawa ng mga mamamayan ng bansa sa loob at labas ng bansa sa loob ng isang taon. Tumutukoy din ito sa ginawa ng lahat ng mamamayang Pilipino kahit saang dako sila ng daigdig naroon Ang mga produktong handa nang ikonsumo ang isinasama sa pagkuwenta ng GNP. Ito ang tinatawag na final goods, mga produkto na hindi na kailangang iproseso upang maging yaring produkto, tulad halimbawa ng mga damit, delata, makinarya, asukal, tinapay at iba pa.