The Study Of Macroeconomics

The Study of Macroeconomics
Micro vs. Macro Microeconomics – the study of how individual households and firms make
decisions and how they interact with one another in markets. Macroeconomics – the study of the
economy as a whole. – Its goal is to explain the economic changes that affect many households,
firms, and markets at once. The Two Groups of Economists Macroeconomists Focus on the
economy as a whole. Spend much time analyzing how total income changes and how changes in
income cause changes in other modes of economic behavior. Microeconomists Focus on the markets
for individual commodities and on the decisions of single economic agents. Hold total income
constant. The Two Groups of Economists Macroeconomists Spend ... Show more content on
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The Great Depression in the 1930s "America 's "Great Depression" began with the dramatic crash of
the stock market on "Black Thursday", October 24, 1929 when 16 million shares of stock were
quickly sold by panicking investors who had lost faith in the American economy. At the height of
the Depression in 1933, nearly 25% of the Nation 's total work force, 12,830,000 people, were
unemployed." "Wage income for workers who were lucky enough to have kept their jobs fell almost
43% between 1929 and 1933. It was the worst economic disaster in American history. Farm prices
fell so drastically that many farmers lost their homes and land. Many went hungry." JOHN
MAYNARD KEYNES The General Theory of Employment, Interest and Money  argued that it is
possible for high unemployment and underutilized capacity to persist in market economies  argued
that government fiscal and monetary policies can affect output and thereby reduce unemployment
and shorten economic downturns Measuring a Nation's Income Measuring a Nation's Income
Microeconomics Microeconomics is the study
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Macroeconomics Gdp
Circulation in macroeconomics
Macroeconomics (from Greek prefix "makros–" meaning "large" + "economics") is a branch of
economics dealing with the performance, structure, behavior, and decision–making of an economy
as a whole, rather than individual markets. This includes national, regional, and global economies.
[1][2] With microeconomics, macroeconomics is one of the two most general fields in economics.
Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices
to understand how the whole economy functions. Macroeconomists develop models that explain the
relationship between such factors as national income, output, consumption, unemployment,
inflation, savings, investment, international trade and ... Show more content on Helpwriting.net ...
Wages may be too high because of minimum wage laws or union activity. Consistent with classical
unemployment, frictional unemployment occurs when appropriate job vacancies exist for a worker,
but the length of time needed to search for and find the job leads to a period of unemployment.[5]
Structural unemployment covers a variety of possible causes of unemployment including a
mismatch between workers ' skills and the skills required for open jobs.[6] Large amounts of
structural unemployment can occur when an economy is transitioning industries and workers find
their previous set of skills are no longer in demand. Structural unemployment is similar to frictional
unemployment since both reflect the problem of matching workers with job vacancies, but structural
unemployment covers the time needed to acquire new skills not just the short term search process.
[7] While some types of unemployment may occur regardless of the condition of the economy,
cyclical unemployment occurs when growth stagnates. Okun 's law represents the empirical
relationship between unemployment and economic growth.[8] The original version of Okun 's law
states that a 3% increase in output would lead to a 1% decrease in unemployment.[9]
US effective corporate tax rate, 1947–2012
Percent of US population employed, 1995–2012
Average annual growth in U.S. employment, by top income tax bracket

Essay about Macroeconomics
You may have already studied microeconomics, which looks at supply, demand and prices for
individual goods. Macroeconomics looks at the bigger picture and involves the study of the
economy as a whole.
National income
Let us start by looking at a simple example – a
'two sector' economy made up of households
(consumers) and firms (producers) –and use this to develop the idea of national income. To start
with we will ignore the impact of government policy and overseas sectors.
Households ultimately own the factors of production, e.g., labour, materials and capital, and supply
these factors to firms who use them to produce goods and services. In return households earn
rewards for supplying the firms with the factors of ... Show more content on Helpwriting.net ...
This model will use the following definitions: Consumption (C) – consumption goods produced and
sold to customers i.e., the chairs.
Savings (S) – income that is not spent on consumption. Investment (I) – production of, or
expenditure on, non–consumption goods (carried out by firms) including expenditure on increasing
stocks of consumption goods.
Injections – expenditure on domestic output not originating from consumers e.g., investment.
Leakages – income not spent on consumption of domestic output e.g., savings.
Consumers will not spend all their income on goods and services. They will also have savings –
income not spent on consumption. Similarly producers will not just spend on producing goods but
will also carry out investment – expenditure on non–consumption goods.
There are therefore injections into (investment) and leakages from (savings) the circular flow.
These injections and leakages can now be added to the circular flow model (see Figure 2)
Figure 2
Notes to Figure 2
In this model the income earned by households (Y) must be equal to expenditure on purchasing
national product (E). Output of consumption goods by firms equals consumption expenditure by
household's (C). Note that households do not spend all their income – instead they save (S) – a
leakage. Expenditure on non–consumption goods by firms is investment (I) – an injection.
Income (Y) = Expenditure (E)
Income

Gross Domestic Product Is The Measure Of A Nation 's Total...
Gross Domestic Product is the curative measure of a nation's total economic activity. It represents
the monetary value of all goods and services produced within a nation's geographic borders over a
specified period of time. In other words, it's how to tell how the economy of a country is doing. It is
the total dollar valued of all goods and services; the size of the economy usually in a given year.
GDP first came into use in 1937 in a report to the US Congress in response to the Great Depression,
after Russian economist Simon Kuznets conceived the system of measurement. The system used
before was the Gross National Product (GNP). It was widely adopted in 1944 as the standard means
to measure national economist. The income approach to calculate the GDP is the sum of the
components. Labor income, rental income, interest income, and profits earned by households in a
year. What is spent on a product is the income to those who helped to produce it and sell it. The
expenditure approach, on the other hand, totals consumption, investment, government spending, and
net exports produced by a country in a year. The first component of the GDP is consumption. It
includes all private and public consumption, government outlays, investments, and exports minus
imports that occur within a defined territory. Is normally the largest GDP component. Many persons
judge the economic performance of their economic performance of their country mainly in terms of
consumption level of dynamics.

Australia's Economic Growth
Economic growth
An increase in the capacity of an economy to produce goods and services, compared from one
period of time to another.
Inflation is a general increase in prices and fall in the purchasing value of money.
The growth of an economy is thought of not only as an increase in productive capacity but also as an
improvement in the quality of life to the people of that economy.
For comparing one country's economic growth to another, GDP or GNP per capita should be used as
these take into account population differences between countries.
How is it measured?
GDP (Gross domestic product) is the sum of the market values, or prices, of all final goods and
services produced in an economy during a period of time.
It is the monetary value of ... Show more content on Helpwriting.net ...
During the GFC, growth in the economy slowed to around half a per cent and the unemployment
rate has risen by nearly two percentage points to around 5¾% by November 2009. It also decreased
the wealth of Australian households by 10%
Australia's economy is dominated by its services sector, yet its economic success is based on
abundance of agricultural and mineral resources. Australia's comparative advantage in the export of
primary products is a reflection of the natural wealth of the Australian continent and its small
domestic market.
Global influences
China makes up 30% of Australia's export markets, mainly focusing on services and mining goods
China's demand lead to a boom in iron ore, coal and copper prices–Iron ore peaking in 2011 at $185
per tonne, it is currently at $54 per tonne. This was driven by Chinese demand for

Essay about Principles of Macroeconomics
Data Exercise One ECON 201: Principles of Macroeconomics September 5, 2014 To live in an
economy that is not negatively impacted by recession, downsizing, or business capsizing would be
ideal. The unfortunate reality is that we are faced with economic situations that will be either helpful
or hurtful to us all. Over the last few quarters between 2013 and 2014 the U.S. Bureau of Economic
Analysis (BEA), conducted an analysis that reflects the changes in GDP. During this time the
Nominal GDP was much greater than the Real GDP. Expenditures Approach to Calculating GDP –
638175208978500From 2013 through 2014 the Nominal GDP was greater because the values
during that time were not adjusted. It is understood that Nominal GDP is the ... Show more content
on Helpwriting.net ...
Considering the table above, GNP was higher than the National Income by 2,521.3. To determine
National Income from GNP you have to subtract GNP. The main component would be the value of
GNP and the total output of goods and services of a country. National Income also considers both
domestic and international earnings. GDP in Different Countries COUNTRY GDP (in billions of
U.S. dollars) Population (in millions) Per Capita GDP (in thousands of U.S. dollars) 1 2 3 4=2/3
UNITED STATES 16800 316.1 5314.7 JAPAN 4901 127.3 3849.9 CHINA 9240 1357.3 680.7
MEXICO 1260 122.3 1030.2 RUSSIAN FEDERATION 2096 143.5 1460.6 SWITZERLAND 650.7
8.081 8052.2 SWEDEN 557.9 9.592 5816.3 LUXEMBOURG 60.38 .543 11119.7 COUNTRY GDP
(in billions of U.S. dollars) Population (in millions) Per Capita GDP (in thousands of U.S. dollars) 1
2 3 4=2/3 LUXEMBOURG 60.38 .543 11119.7 SWITZERLAND 650.7 8.081 8052.2 SWEDEN
557.9 9.592 5816.3 UNITED STATES 16800 316.1 5314.7 JAPAN 4901 127.3 3849.9 RUSSIAN
FEDERATION 2096 143.5 1460.6 MEXICO 1260 122.3 1030.2 CHINA 9240 1357.3 680.7 In the
table above are different countries reflecting their GDP, population and Per Capita GDP. When
arranged based on GDP, the United States ranked highest. Upon rearranging the order by highest Per
Capita GDP to the lowest, the order did not remain the same, as for order per GDP and Luxembourg
was the highest. This difference is due to the population size and the fact that

The Population Of The Czech Republic
Executive Summary
Population
The total population of the Czech Republic, as of July 2014, is 10,627,448 people. It is growing at
an annual change of 0.17%. There are 9.79 live births per 1,000 people as of 2014 (CIA World
Factbook, 2014), and about 1.45 births per woman (World Bank, 2012).
Birthrates
There are 1.45 births per woman (World Bank, 2012)
(http://data.worldbank.org/indicator/SP.DYN.TFRT.IN?)
Distribution of population
Age: The Czech Republic has a high percentage (43.6%) of citizens aged 25 to 54. The next highest
percentage is that of the 65 and over age group (17.6%). There are smaller percentages of younger
ages, and as a whole, the country is ageing (CIA World Factbook, 2014).
Figure 1. Age distribution ... Show more content on Helpwriting.net ...
The primary ethnic group in the Czech Republic is the Czechs, who make up 64.3% of the
population. The remaining population is comprised of Moravians (5%), Slovaks (1.4%), other
(1.8%), and an unspecified sector (27.5%) (CIA World Factbook, 2014).
Economic Statistics and activity
Gross national product (GNP or GDP)
The Czech Republic's total GNP in purchasing power parity is $281.3 billion. Their Gross Domestic
Product (GDP) is $208.8 billion USD. The GDP is decreasing at a rate of –0.7% (World Bank,
2013).
Personal income per capita
The Czech Republic has a Gross National Income (GNI) per capita of $18,950 USD (World Bank,
2013). It is decreasing at a rate of –1.5% (World Bank, 2013).
(http://data.worldbank.org/indicator/NY.GNP.PCAP.CD/countries/CZ––XS?display=default)
The average family income (disposable) per capita in the Czech Republic is $17,262 USD per year
(http://www.oecdbetterlifeindex.org/countries/czech–republic/)
a. Distribution of wealth
i. Income classes
1. Population below the poverty line: 9.8% (CIA World Factbook, 2011) ii. Proportion of the
population in each class iii. Is the distribution distorted?
Minerals and resources
The primary minerals and resources of the Czech Republic are hard and soft coal, timber, clay,
graphite, and kaolin, which is a fine, soft, white clay used for making porcelain and china (CIA

World Factbook, 2014).
Surface Transportation

National Income in of India in 2010-11
MACRO–ECONOMICS ASSIGNMENT TOPIC: NATIONAL INCOME ACCOUNTING IN
INDIA WITH REFERENCE TO THE YEAR 2010–2011 What is NATIONAL INCOME? The
concept of National Income is worth elaborating as it is the index of economic development.
Innumerable varieties of goods are produced in an economy in a year. These goods or output are
expressed in monetary terms. The aggregate of monetary values of all verities of goods produced in
a country during a given period, usually a year is called National product. For the production of
innumerable varieties of output, four factors of production have their respective contribution for
which they are paid in terms of * rent, * wage, * interest and * Profit. The sums of their
enumerations ... Show more content on Helpwriting.net ...
The expenditure method cannot be used where markets are unorganised. The production method
cannot also be used for unorganised sectors such as small–scale industries, trade and transport, and
so on. Different methods are used to measure the income genera ted by various sectors of the
economy. For calculating national income, the Indian economy is divided into 14 broad sectors,
which are then grouped into three main categories : A, B and C. Agriculture, forestry and logging,
fishing, mining and quarrying, registered manufacturing and construction are included in category
A. The production method is applied to category A. The value added by this category is found by
subtracting the value of raw materials and other inputs from the aggregate of commodity–wise
output. Electricity, railways, air transport, water and organised transport, communications, banking
and insurance, real estate, public administration and defence are included in category B. For
category B, the income method is applied and, for this, all the types of factor incomes which are
reported in the annual accounts of various organisations are aggregated. In category C, gas and
water supply, unorganised roads and water transport, storage, trade, hotels and restaurants,
ownership of dwelling and other services are included. For this category, sample surveys are done
periodically to find out the average productivity of labour. Estimates of the workforce are
interpolated or extrapolated and

ECO 100 Final Paper Effects of taxes on the economy
Effects of Taxes on the Economy
Donna Ralston
ECO 100 Survey of Contemporary Economic Issues
Instructor: Frank Huber
July 14, 2014
What happens to the economy when the government raises or lowers taxes? Lots of people in
America do not understand exactly what happens to the economy when the government raises or
lowers taxes. In this paper I am going to address that question as well as a few other things such as:
Describing the effect on net personal income when the government raises taxes and when the
government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher
taxes and lower taxes. I will also identify what other economic factors are affected when taxes are
raised or ... Show more content on Helpwriting.net ...
To get everything produced by a country's citizens, no matter where they are in the world, you
should look at Gross National Product (GNP), also called Gross National Income (GNI)."
(Amadeo,K. n.d) Each month, the Bureau of Economic Analysis (BEA), an agency of the U.S.
Department of Commerce, releases an estimate of the level and growth of U.S. gross domestic
product (GDP), which is the output of goods and services produced by labor and property located in
the United States.
Usually, a recession is when a slowdown in economic activity happens and can cause a decrease in
jobs, as well as constricted credit for loans, and lethargic or disheartened sales overall. To be precise,
a recession is defined as a decrease in the nation's total economic activity (the GNP) for two or more
consecutive quarters. We know when a recession occurs because it affects everyone. You might lose
your job, be turned down for a loan that you normally could have gotten etc... The government
intervenes by implementing the fiscal policy; it is a type of economical intervention where the
government inserts its guidelines into the economy to either expand the economy's growth or to
contract it. They do this by fluctuating the levels of spending and taxation, the governments can
directly or indirectly affect the total demand, which is the total amount of goods and services in the
economy.
What other economic factors are affected when taxes are

Business Gross Domestic Products
What is Gross Domestic Product?
Samantha Vanderlooven
11/18/2013
Macroeconomics | ECO201 A02
Faculty: Online Instructor , Jad Habchi
1. What was Real GDP for 2009? The GDP for 2009 was –3.1 In 2009, GDP started to improve after
four quarters of decline during The Great Recession. Nominal GDP for 2009 rebounded to $14.418
trillion Q1: $14,381 trillion Q2: $14.342 trillion Q3: $14.384 trillion Q4: $14.564 trillion Or The
Real GDP for 2009 was 13,973.7
a. What does GDP tell us?
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a
country's economy. It represents the total dollar value of all goods and services ... Show more
content on Helpwriting.net ...
National income accounting records the level of activity in accounts such as total revenues earned
by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on
sales and income taxes by corporations and individuals residing in the country.
h. What is the difference between GNP and NI? GNP measures the market value of all final goods
and services produced by a country's citizens or residents. The difference is subtle but important.
GNP excludes economic activity that occurs in the U.S. but is owned by foreigners and includes
American economic activity that occurs in other countries. GDP is place based whereas GNP is
ownership based. So, if a foreigner creates an Internet startup in Silicon Valley, this will count as
GDP, but not GNP. If General Electric opens a new plant in Poland, this investment will be included
in GNP, but not GDP. i. How did NI change from 2008? In 2008, the money value of GDP expands
to $4,500m but during the year, inflation is 3% causing the general index of prices to rise from a
2007 base year value of 100 to 103 in 2008.
j. What caused these changes? The financial crisis was created from the housing bubble and the
mortgage industry. Additionally, this caused a fall in national income, which lead growth in GDP in
negative territory. I changed

Macro Economics Question Paper
M2_A2: What is Gross Domestic Product? Kayla Manning ECO201: Macroeconomics Argosy
University 1. The Real GDP was 17,348.1 for 2014 A: The total value of all goods and services
produced in the economy during any given period. B: 2014 the Real GDP increased 2.4 percent and
2013 increased 2.2 percent C: The expansion in real GDP in 2014 reflected constructive
contributions from personal consumption expenditures (PCE), nonresidential fixed investments,
exports, private inventory investment, state and local government spending, and residential fixed
investments that were offset by negative commitment from government spending. Imports, which
are subtraction in the count of GDP expanded. 2. The GNP was 16301.1 for 2014 A: Gross
Domestic Production (GDP) and Gross National Production (GNP) are both measuring the market
value of all goods and services produced for final sale in the economy. The distinction is the ...
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C: Increase in the levels of corporations in the country and increase in the levels of production of the
people. 3. The National Income was 15,076.5 for 2014. A: The total value a country's final output of
all new goods and services produced in a year. B: GNP and GDP both mirror the national Income
and pay of an economy. The primary contrast is that GNP considers net salary receipts from abroad.
GDP is a measure of national Income/ national output and national use deliver in a specific nation.
C: It increased in small increments in all areas of NI. D: Personal income increased 3.9% in 2014,
compared with an increase of 2.0% in 2013. DPI increased 3.8 percent, compared with an increase
of 1.0%. PCE increased 3.9%, compared with an increase of 3.6%. 4: Disposable personal income
increased $104.8 billion, or 3.3%, in fourth quarter, compared with an increase of $105.1 billion, or
3.3 percent in the third quarter. Real disposable personal income increases 3.8 percent, compare with
an increase of

Gross Domestic Product Is The Value Of Goods Produced And...
Gross Domestic Product, also known as GDP, is defined as the value of goods produced and services
provided in a country during one year. Gross Domestic Product is important in the culture of
economics because in the United States, we use it to measure the well–being of the economy. Gross
Domestic Product is measured in quarters, there are four quarters in one economic year. Say the
Gross Domestic Product is down 10% in Quarter One and then in Quarter Two the Gross Domestic
Product has gone up by 15%. You subtract 15% from 10% and then you are left with 5%. Therefore,
the economy, or the Gross Domestic Product, has grown by 5% since the last quarter. If the Gross
Domestic Product was never measured, we as Americans would not know if the economy was
growing, shirking, or staying the same.
On news channels like FOX News, FOX Business Network, CNN, and MSNBC we hear them
talking about the nation's economy and the gross domestic product all the time. On shows like Neil
Cavuto, they have guest on the show to discuss the current gross domestic product and how it's
either improved or diminished over the past years or quarters. In 2010, on Neil Cavuto's FOX
Business Network show, "Cavuto on Business" the group was discussing the downplays of the
fourth quarter gross domestic product. The gross domestic product for the fourth quarter had jumped
5.4%. Neil and four other contributors were discussing whether or not the Obama Administration
was going to increase spending or put money

Economics For Business Administration : Economics
Richmond The American International University in London School of Business and Economics
Master in Business Administration ENT7100 Economics for Business Assignment 1 "The GDP is an
appropriate measure of economic activity and wealth." David Longbottom 000055846 November
2014 Table of Contents Executive Summary 4 1.0 Background 5 1.1. Macroeconomic Issues and
Policy Objectives 5 1.2 Circular Flow of Income 7 2.0 Analysis 8 2.1 Measures for National Income
and Output 8 2.2 How is GDP Calculated? 12 2.3 Arguments for GDP 13 2.4 Arguments against
GDP 14 2.5 Comparative Case Studies 15 3.0 Conclusions 17 3.1 Modern Thinking 17 3.2
Summary 17 4.0 Bibliography 18 3.1 eBooks 18 3.2 Websites 18 ... Show more content on
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The assignment includes: Major economic issues and government policy objectives Measures for
national income and output Arguments for GDP as an appropriate measure Arguments against GDP
as an appropriate measure Comparative case studies Conclusions and summary of alternatives The
assignment focuses on United Kingdom [UK] GDP in comparison to major European Union [EU]
countries, the United States [US] and the rest of the World. 1.0 Background 1.1. Macroeconomic
Issues and Policy Objectives Major issues that change depending on the nature of the economy are:
Economic growth Unemployment Inflation Balance of payments and exchange rate Governments
aim to achieve steady economic growth that can be sustained over a long period of time. The rate of
economic growth is defined as the percentage increase in national output over a 12 month period1. It
is important growth is monitored and controlled to prevent the risk of recession. An economy is
determined to be in recession if two successive quarters of negative economic growth are reported,
as measured by GDP7. There are large differences in growth rate between individual countries over
different periods (Figure 1). Governments also aim to control inefficiencies within the economy by
reducing unemployment, keeping inflation low and avoiding balance of payment or exchange rate
problems. High unemployment is considered a waste of

Concept Of Gross Domestic Product
Introduction and explanation of structure of paper
The concept of Gross Domestic Product (GDP), is the measured value of the output, which is
currently produced in the domestic economy. This gives a view of the economic wellbeing for the
country, it does not however give a deeper insight into the true wellbeing of the citizens within the
country. This essay will go over the, definition of GDP, Real versus Nominal GDP, Three ways to
calculate GDP, Four components of GDP, types of money transactions not included in GDP and
aspects of the standard of living that not addressed in the calculation of GDP.
Nominal versus Real GDP
Nominal GDP versus Real GDP. Nominal GDP, is the value of final goods and services produced by
and the economy in the ... Show more content on Helpwriting.net ...
Examples of these are personal vehicles and homes. Non–durable goods or consumable goods, are
goods that will be used and then repurchased. This included items such as food, laundry detergent
and toothpaste.
Second is Investment (I), Investment being important because it has to deal with the infrastructure of
a country, state or city the GDP is being calculated for. Investment takes into consideration,
construction this includes residential, commercial and industrial. Another component of investment
is equipment, this is supplemental to construction. The last component of investment is Inventory.
Inventory, this being the amount of goods or services left in reserve and have not been used yet.
Third is Government Spending on goods and services (G), this is culmination of spending by the
government that includes the total expenditures on good and services by the federal government or
state and local government.
Lastly in the calculation of GDP is the Net Exports (X–M), goods and services that are shipped or
sold overseas are exports. Imports are the goods or services that are brought into the country from
overseas. When calculating the Net Exports, the exports for a given year are subtracted by the
Imports for a given year, giving the net exports.
Three types of money transactions not included in GDP Transaction that are not included would be
those sales of used goods, person to person transactions, goods

How is National Income derived? What is the GDP? What...
How is National Income derived? What is the GDP? What information does it give us about a
nation? What is per capita income? If you wanted to know about the economy of a country, which
would you consider more important, and why? (25 points)
National Income is derived through the overall income earned by a country's people, including labor
and capital investment.
Gross domestic product is the sum of gross value added by all resident producers in the economy
plus any product taxes and minus any subsidies not included in the value of the products.
It measures output generated through production by labor and property which is physically located
within the confines of a country.
The following excerpts are definitions of ... Show more content on Helpwriting.net ...
"At market prices" is the way GDP can measure, in a single number, the production of apples plus
oranges plus railroad cars plus all of the millions of other goods and services produced in a major
economy. Theoretically, however, goods not sold in markets should be also be included in GDP,
e.g., services of homemakers or output of home gardens, as well as illegal activities such as the sale
of narcotics, gambling, and prostitution. Also, because it is a measure of the value of output in terms
of market prices, GDP, is sensitive to changes in the average price level. The same physical output
will correspond to a different
GDP level as the average level of market prices varies. To correct for this, the concept of nominal
GDP is used to calculate real GDP, which is the value of domestic product measured in constant
prices from a base year. In effect, this is an attempt to measure actual or real output, e.g. the number
of cars, computers and meals served.".
Per capita income is a measurement of income per person in a population and is often used to
measure a country's standard of living. Measuring Per capita income has a few flaws though. It
gives no indication of the distribution of income within a country, so a small wealthy class can
increase the measured per–capita income far above that of the majority of the population. Differing
currency exchange rates between countries mean that a given amount of money has differing values
in

Gdp, Is It a Useful Measure of Living Standards?
Why is GDP per capita useful as a measure of living standards? What are the limitations of GDP per
capita as a comparable measure of living standards? Gross Domestic Product (GDP) measures the
monetary value of final goods and services produced in a given year by factors of production within
a country. GDP reports are released on the last day of each quarter, reflecting the previous quarter.
Therefore, it is measured on a quarterly basis and measures the level of economic growth in
different countries. GDP is commonly expressed as an international currency and is useful because it
is widely known, easily calculated and provides a useful statistic for comparison. These figures can
help us determine whether a nation's economy has ... Show more content on Helpwriting.net ...
Currencies are traded like any commodity and sometimes they are over or undervalued in different
countries. If the common exchange rate was used, a distorted picture of comparable living standards
would be the result. Therefore, PPP is used to correct the distortions caused by over or undervalued
currencies. GDP per capita ignores the value of goods and services that are not traded, which may
understate the true living standards because of the black economy. In a black/hidden economy,
economic activity and the consumption of goods and services are not recorded or included in the
GDP. The illegal economy is part of the hidden economy and consists of income produced by
violating legal laws, such as criminal activities, drug trafficking and prostitution. Therefore these
activities do not show up on tax authorities. Non–market goods and services are not recorded either.
An example of this is babysitting; some parents may put their children in daycare centres, which
they pay and therefore the money is included in the economic activity of the country. On the other
hand, a parent may ask a neighbor to look after their child whilst they go out, as a favour without
paying them. The neighbor is executing the exact same service that a daycare centre would, except
they do not receive any money for doing so. The Economist's latest estimates for the total value of
the black economy throughout the world is $9 trillion and

Singapore's Globalized And Diversified Economy
Singapore Known as one of the Four Asian Tigers, Singapore's globalized and diversified economy
is only behind Hong Kong's. That title has been achieved due to its market economy, "A highly
developed, and one of the freest, most competitive, innovative and business friendly economy based
on extended entrepôt trade, a profitable trading post that allows importing and exporting free of
duties." (Wikipedia) Worldwide, Singapore is one of the major commercial centers, third highest per
capita income, fourth biggest in finance, and fifth among the busiest ports; yet, it has one of the
highest income inequalities. Singapore's trading and manufacturing represent 26% of its GDP. The
Corruption Perception Index places Singapore along with New Zealand and the Scandinavian
countries as one of the world's least corrupt countries. Also, location, advanced infrastructure, low
taxes, and skilled workforce are the conditions that make Singapore so attractive to foreign
investment. A. Identify type: predominantly agricultural, industrial, or service? Give percentages
Agriculture is definitely not one of Singapore's main economic activities; nevertheless, its main
work is in the service sector. Out of 3,102,500 jobs, 2,151,400 belong to that field. Singapore's
unemployment rate is only 2%. Something remarkable for such a small island is that around 7,000
multinational companies from the United States, Japan and Europe, and around 1,500 from China
and another 1,500 from India, in

Gross National Income (GNI)
I chose to do GNI per capita (PPP 2013) because at first glance I could tell that the numbers would
vary a lot more than the other three options. GNI has to do with thousands while the other choices
were single digits. Gross national income (GNI) was also a topic I find to be interesting. I think it is
beneficial to see each countries individual income and a choropleth map depicts it very well. The
first methodology I used for this map the video by Professor Bell. I looked at the tables in the
Appendix comparing them and doing a little bit of research to see which one was the most
interesting to me. I then opened the Excel sheet and began plugging in the numbers for each country.
Once I plugged them in I ordered them from largest to smallest.

Macroeconomic as/Ad Framework
1) Use the AS/AD framework to show the separate effects on GDP, inflation and public sector
borrowing on any single national economy of: a) cut in public spending b) an increase in the rate of
VAT (sales tax) c) a slowdown in the GDP growth of less developed economies. (Make sure that you
include clear and appropriate diagrams for this question) According to Begg and Ward (2009) fiscal
policy is the government's decisions regarding taxation and spending to influence level of demand
for goods and services. Cut in public spending and increase in the rate of VAT are instruments of
contractionary fiscal policy in order to slow down economy, reduce inflation and deficit. a) Cut in
public spending ... Show more content on Helpwriting.net ...
43.390 5,1 14,8 –7,3 2008. 47.766 2,2 13,2 –8,9 2009. 45.667 –6,0 14,9 –5,0 2010. 45.920 –1,2 17,4
–1,0 2011. 45.923 0 18 –1,0 2012. forecast 45.799 –1,0 18,5 0,3 2013. forecast 47.708 1 18,3 0,9
Table 2 Croatian macroeconomic statistical indicators (Croatian National Bank) As a conclusion we
can say that contractionary fiscal policy is showing effects on a long run (reduces deficit, and
balanced ratio of government spending and revenue), however in short run it is causing recession
and increased unemployment.
c) Slowdown in the GDP of less developed economies from perspective of exporting country to
LDE will lead to the reduction of export (part of aggregate demand) to the LDE country because
their output and consumption will be reduced. Consequently expenditure and production in
exporting country will be reduced which results in increased unemployment and decreased output.
Since government income from taxes has been reduced government will need to increase borrowing
in order to cover deficit. Export to LDE is quite unique since such countries are mostly agriculture
oriented. According to UNDP most of LDE import is based on basic food stuff (wheat and rice) and
projections for 2015 are suggesting that this dependency will continue to increase. Also, according
to UNDP export of LDE are heavily dependent on weather conditions which shift LDC country
from deficit to surplus situation. Another

Essay Keynesian Economics
Macroeconomics is the branch of economics concerned with the aggregate, or overall, economy.
Macroeconomics deals with economic factors such as total national output and income,
unemployment, balance of payments, and the rate of inflation. It is distinct from microeconomics,
which is the study of the composition of output such as the supply and demand for individual goods
and services, the way they are traded in markets, and the pattern of their relative prices.
At the basis of macroeconomics is an understanding of what constitutes national output, or national
income, and the related concept of gross national product (GNP). The GNP is the total value of
goods and services produced in an economy during a given period of ... Show more content on
Helpwriting.net ...
If, however, some rigidity prevented wages from falling to the point where supply and demand for
labor were at equilibrium, then unemployment could persist. Such an obstacle could be, for
example, trade union action to maintain minimum wages or minimum–wage legislation.
Keynes's major innovation was to argue that persistent unemployment might be caused by a
deficiency in demand for production or services, rather than by a disequilibrium in the labor market.
Such a deficiency of demand could be explained by a failure of planned (intended) investment to
match planned (intended) savings. Savings constitute a leakage in the circular flow by which the
incomes earned in the course of producing goods or services are transferred back into demand for
other goods and services. A leakage in the circular flow of incomes would tend to reduce the level of
total demand. "Real" investment, known as capital formation (the production of machines, factories,
housing, and so on), has the opposite effect–it is an injection into the circular flow relating income
to output–and tends to raise the level of demand.
In the earlier classical models of unemployment, such as the one

Economic Growth Between India And India
Table of content
Introduction......................................................................................................................1 What is
Economic growth? ................................................................................................2 What is GDP?
..................................................................................................................3 Compare economic growth
Australia and India....................................................................4 Positives and negatives impacts on
society...........................................................................5 ... Show more content on Helpwriting.net ...
In contrast, the lack of economic growth in the poorest countries of the world has meant that living
conditions for hundreds of millions of people are appalling by the standards of rich countries; per
capita income levels in many 21st–century countries are much lower than they were in 19th–
century.To understand why the human race has become so much wealthier and why our wealth is
shared so inequitably among the inhabitants of the world, we need to understand what drives
economic growth. What is Economic Growth? An increase in the capacity of an economy to produce
goods and services, compared from one period of time to another. Economic growth can be
measured in nominal terms, which include inflation, or in real terms, which are adjusted for
inflation. For comparing one country 's economic growth to another, GDP or GNP per capita should
be used as these take into account population differences between countries. Economic growths is an
increase in what an economy can produce if it is using all its scarce resources. An increase in an
economy's productive potential can be shown by an outward shift in the economy's production
possibility frontier. A country 's economic growth is usually indicated by an increase in that country
's gross

Importance of National Income
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 (GDP), gross national
product (GNP), net national income (NNI), and adjusted national income (NNI* adjusted for natural
resource depletion). All are specially concerned with counting the total amount of goods and
services produced within some "boundary". The boundary is usually defined by geography or
citizenship, and may also restrict the goods and services that are counted. For instance, some
measures count only goods and services that are exchanged for money, excluding bartered goods,
while other measures may attempt to include bartered goods by imputing monetary values to ...
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Because of the complication of the multiple stages in the production of a good or service, only the
final value of a good or service is included in the total output. This avoids an issue often called
'double counting', wherein the total value of a good is included several times in national output, by
counting it repeatedly in several stages of production. In the example of meat production, the value
of the good from the farm may be $10, then $30 from the butchers, and then $60 from the
supermarket. The value that should be included in final national output should be $60, not the sum
of all those numbers, $90. The values added at each stage of production over the previous stage are
respectively $10, $20, and $30. Their sum gives an alternative way of calculating the value of final
output.
Formulae:
GDP(gross domestic product) at market price = value of output in an economy in the particular year
– intermediate consumption
NNP at factor cost = GDP at market price – depreciation + NFIA (net factor income from abroad) –
net indirect taxes[3]
[edit]The income approach
The income approach equates the total output of a nation to the total factor income received by
residents or citizens of the nation. The main types of factor income are:
Employee compensation (cost of fringe benefits, including unemployment, health, and retirement
benefits);
Interest received net of interest paid;
Rental income (mainly for the use of real estate) net of

The Asian Tigers : Singapore's Globalized And Diversified...
Describe the Economy Known as one of the Four Asian Tigers, Singapore's globalized and
diversified economy is only behind Hong Kong's. That title has been achieved due to its market
economy, "A highly developed, and one of the freest, most competitive, innovative and business
friendly economy based on extended entrepôt trade, a profitable trading post that allows importing
and exporting free of duties." (Wikipedia) Worldwide, Singapore is one of the major commercial
centers, third highest per capita income, fourth biggest in finance, and fifth among the busiest ports;
yet, it has one of the highest income inequalities. Singapore's trading and manufacturing represent
26% of its GDP. The Corruption Perception Index places Singapore along with New Zealand and the
Scandinavian countries as one of the world's least corrupt countries. Also, location, advanced
infrastructure, low taxes, and skilled workforce are the conditions that make Singapore so attractive
to foreign investment. A. Identify type: predominantly agricultural, industrial, or service? Give
percentages Agriculture is definitely not one of Singapore's main economic activities; nevertheless,
its main work is in the service sector. Out of 3,102,500 jobs, 2,151,400 belong to that field.
Singapore's unemployment rate is only 2%. Something remarkable for such a small island is that
around 7,000 multinational companies from the United States, Japan and Europe, and around 1,500
from China and another 1,500 from India,

How the Philippine Gov. Measure Its Gdp and Gnp
GDP and GNP as economic indicators
Gross Domestic Product (GDP) and Gross National Product (GNP) are key figures in accessing the
status of a country's economy. These numbers are also used to gauge the competency of the
administration in steering the economic wheels of the country.
By definition:
Gross Domestic Product (GDP) is the total market value of a country's output. It is the market value
of all final goods and services produced within a given period of time by factors of production
within a country.
Gross National Product (GNP) is the total market value of all final goods and services produced
within a given period by factors of production owned by a country's citizens, regardless of where the
output is produced.
GNP vs. ... Show more content on Helpwriting.net ...
G– Government Consumption
I – Capital Formation (spending by firms & households on new capital)
X – Exports
M –Imports
SD– Statistical Discrepancy
Table 2
Table 2.1
Table 2.2
Table 2.3
Table 2.4
*Current Market Prices
In the presentation at current market prices, the component of GDP are all valued at the existing
year of current market prices

*Constant Market Prices
At Constant Market Prices In the presentation of constant prices at base year, all product aggregates
are valued at fixed base year prices. The first base year used to calculate GDP was 1985.
*A good resource to compute for constant market price (Philippine consumer Index)
http://www.census.gov.ph/data/sectordata/datacpi.html
What Accounts for the Biggest Difference between the two measures?
The difference between the Gross Domestic Product (GDP) and our Gross National Product (GNP)
is what is referred to as NFIA or Net Factor Income from Abroad. See Table 3
Table 3. GDP, GNP and NFIA Figures 2003–2008 in Millions Source. National Statistics
Coordination Board
PERIOD At Current Prices GDP NFIA GNP
2003 4,316,402 315,077 4,631,479
Q1 994,224 68,550 1,062,773
Q2 1,032,440 80,778 1,113,218
Q3 1,057,502 83,314 1,140,816
Q4 1,232,236 82,435 1,314,672
2004 4,871,555 376,509 5,248,064
Q1 1,109,078 84,329 1,193,407
Q2 1,170,574 97,245 1,267,820
Q3 1,198,554 97,202 1,295,756
Q4 1,393,348 97,733 1,491,081
2005 5,444,038 447,145 5,891,183
Q1 1,234,383 100,221 1,336,605
Q2

Gross Domestic Product ( Gdp ) Economic Statistics
Gross Domestic Product (GDP) economic statistics are one of the most closely watched stats
throughout each country. In the charts listed above, the nominal GDP is greater than real GDP in
each quarter of 2016 due to the nominal GDP reflecting current GDP at current price and real GDP
reflecting current GDP at past year prices. Also, the chart reflects that the nominal GDP was greater
than the real GDP for each quarter of 2016 due to the value of the nominal GDP sub–categories
(personal consumption expenditures, gross private domestic investments, and government
consumption expenditures and gross investment) all being significantly higher than the same sub–
categories listed under the real GDP. The nominal GDP reflects the prices that are ... Show more
Some differences between the two products are services or the market of goods that are produced for
that respective country's economy. However, the GNP does not include the annual foreign
production that is inherited by the domestic citizens, whereas the GDP does include the foreign
productions that are inherited by its domestic citizens. According to the table above, to determine
the GNP and GDP you will calculate the national product total from the national and personal
income. National income is the overall annual value of goods and services within a respective
country economy. The chart shows that in 2016, the GNP was $7,864.80 higher than the national
income. National income is broken down into ten categories (compensation of employees, rents,
interest, proprietor's income, corporate income taxes, dividends, undistributed corporate profits,
indirect business taxes, consumption of fixed capital and net foreign factor income). However, the
employee compensation makes up the largest portion of the national income. In my opinion, I
believe this to be true, because the economy is valued by its population and the services that are
provided and goods that are sold. This can't happen without having citizens gainfully employed,
which in return will need to be compensated for the work they are contributing to their economy.
Part III. GDP in Different Countries Country Name Country Code Series Name Series Code 2015

Poor Numbers : How We Are Misled By African Development...
Review of 'Poor Numbers: How we are misled by African development statistics and what to do
about it' by Morten Jerven
Poor Numbers' overarching message to data users is to take care when using statistics. Morten
Jerven, former Economic History PhD student and current Assistant Professor of International
Studies, has written many articles about African growth, particularly on the reliability of growth
accounting and evidence. He uses a multidisciplinary approach, combining statistical, historical and
ethnographic methods to analyse the production and dissemination of national income statistics in
Africa, and to demonstrate not only why these numbers are 'wrong', but why it matters for policy–
making and development, and offering policy ... Show more content on Helpwriting.net ...
In the first of four subsequent chapters, Jerven introduces the problem of the poor quality of African
GDP statistics, subject to problems of reliability, accuracy and validity. By introducing GDP, the
main methods used to construct it, and exposing some shocking disparities between the data
produced by the three main sources for national income data, readers can understand the
complexities involved with measuring GDP. Data gathering in African countries is difficult due to
poor data availability and sources, which, combined with using outdated baseline numbers, results in
underestimated income statistics. When Ghana recently revised its baseline year, they moved from a
low–income country to a low–middle–income country almost overnight – exposing the dilemma
associated with taking GDP country rankings at face value. Jerven's dynamic comparison of the data
tables allows us to see how much (or little) we really know about African growth from the statistics.
Chapter 2 is an historical analysis of how African incomes have been measured over time. With
pressure upon statisticians to produce cross–country comparative data for economists, African
nations began national income

Definition Of Poverty
There are a number of definitions of poverty. It is a multifaceted notion which includes social,
economic, and political components. "How we define poverty is critical to politics, policy and
academic debates about the concept. It is bound up with explanations and has implications for
solutions." (Lister, 2004 as cited in Class notes, 2017). The United Nations, first established in 1945
shortly after the second world war, was created to promote international co–operation and maintain
international order (UN, 2017). The global term for poverty is defined by using the Gross National
Product (GNP) and Gross Domestic Product (GDP). Both defined by the World Bank, GNP uses
market valuations to measure national income: GNP per capita (each person) gives an indication of
the typical material living standards of a nation, whereas, GDP is a measure of the total market value
of goods and services output and their economic activity. The United Nations set the bar at the
minimum daily income of $1.25 (93 pence) per day (Class notes, 2017). If you are living on less
than this you are classed as living in absolute poverty. How poverty is measured is a contested
concept and has had researchers long trying to establish a fixed method of determining. The four
main concepts are absolute poverty, relative poverty and deprivation, consensual poverty, and social
exclusion (Class notes, 2017). The concept of absolute poverty was developed in the 19th century by
Joseph Rowntree and was

Macroeconomics And Macroeconomics Of Macroeconomics
Macroeconomics (from the Greek prefix makro– meaning "large" and economics) is a branch of
economics dealing with the performance, structure, behavior, and decision–making of an economy
as a whole, rather than individual markets. This includes national, regional, and global economies.
[1][2] With microeconomics, macroeconomics is one of the two most general fields ineconomics.
Macroeconomists study aggregated indicators such as GDP, unemployment rates, National income,
price indices, and the interrelations among the different sectors of the economy, to better understand
how the whole economy functions. Macroeconomists develop models that explain the relationship
between such factors as national income, output, consumption, unemployment, inflation,savings,
investment, international trade and international finance. In contrast, microeconomics is primarily
focused on the actions of individual agents, such as firms and consumers, and how their behavior
determines prices and quantities in specific markets
While macroeconomics is a broad field of study, there are two areas of research that are emblematic
of the discipline: the attempt to understand the causes and consequences of short–run fluctuations in
national income (the business cycle), and the attempt tounderstand the determinants of long–run
economic growth (increases in national income). Macroeconomic models and their forecasts are
used by governments to assist in the development and evaluation of economic policy.
Basic

Positive Impact Of Globalization
Ans. What is globalization?
Globalization means integrating our economy with world economy. Globalization helps in
interaction between people, companies and governments through exchange of goods and services,
grants, and exchange of technology.
Globalization in India
In year 1991 Indian economy faced economic crisis due to serious Balance of Payments problems
and the rupee devaluated and India at that time had reserve for imports of only three weeks. So the
Indian government had taken a step towards globalization for wellness of Indian economy.
Impacts of globalization
Basically everything have two impacts one is positive and one is negative. So the globalization also
has positive as well as negative impacts
 Positive impacts of globalization
Variety of products– As India open their doors for foreign companies in 1991 the Indian customer
get a large variety of product of various companies at lower prices. After 1991 Indians are not only
having Indian products but also have foreign products which are of very good quality. The entry of
foreign companies in India had also leads to improve in standard of livings of Indian people because
they were providing good quality products at low prices.
Gross domestic product – Gross domestic product is the values of finished goods and services
produced within the domestic territory of a country at a particular poinyt of time.
a) Nominal GDP – In year 1991 GDP was Rs 5,86,212 cr. after passing 25 years in year 2016 it was

Gross Domestic Product
I. Introduction
1. Introduction and objectives
The wealth and success of a country is something that theoretically is very hard to measure and
quantify. However, tools called Indexes can be used to report on the past, present or future state of
country. The usage for these Indexes is quite obvious: they can be used to benchmark the situation
of a country compared to its peers, create historical trends in order to estimate if any improvements
have been made throughout the years in multiple fields. Of course, they can also be used as political
tools for the world leaders for internal purposes (linked to government policies) but also external
policies as it can be a mean to determine the power that a country can have on the international
level. The main Index that has been used for the past 80 years and is still used nowadays to measure
the economic wealth is the Gross Domestic Product (or GDP). It is important to remember that the
initial goal of these indexes (and particularly the GDP) is to measure and give a detailed report of
the addition, subtraction and multiplication of certain numbers that compose a country's economy.
Therefore, a measurement tool is not an end goal in itself.
Nevertheless, this index became the reason for an international competition between countries to
decide which one is the most able to bring this number to the maximum. This might not be an issue
if the GDP was not mainly a measurement of the economic wealth of a country. During the years,
new

Economics
ECONOMICS
TITLE : NATIONAL INCOME
TEAM MEMBERS : SARAH CHIN, ARDEN, NURUL NADYRAH & FIR DAUS
LECTURER : MR.MANO
TABLE OF CONTENT
1. INTRODUCTION TO NATIONAL INCOME 3, 4
2. BACKGROUND OF NATIONAL INCOME 5, 6
3. THE MEASUREMENT OF NATIONAL INCOME 7, 8
4. THE PROBLEMS IN MEASURING NATIONAL INCOME 9,
5. PROBLEMS OF COMPARISON OF NATIONAL INCOME BETWEEN 10
COUNTRIES
6. CONCLUSION 11
7. REFERENCES 12
INTRODUCTION
National Income or national product or national expenditure is the total value of all goods or
services produced or created by a nation ... Show more content on Helpwriting.net ...
Therefore GNP, rather than NNP, is used to make comparisons over time and between countries.
Net National Product
Net national product (NNP) is obtained when the value of depreciation is subtracted from the GNP.
Depreciation occurs when capital equipment use in the production process becomes obsolete after a
certain period of usage.
NNP = GNP – depreciation
NNP can also be measured at market prices or at factor prices. The formula to calculate NNP at
market price is:

NNP (market price) = GNP (market price) – depreciation
&
NNP (market price) = NNP (factor cost) + indirect taxes – subsidies
The formula to calculate NNP at factor cost is:
NNP (factor cost) = GNP (factor cost) – depreciation
&
NNP (factor cost) = NNP (market price) + subsidies – indirect taxes
BACKGROUND OF NATIONAL INCOME
National income is gross domestic income for the country. The gross domestic product (GDP) or
gross domestic income (GDI) is one of the measures of national income and output. GDP can be
defined in three ways, which should give identical results. First, it is equal to the total expenditures
for final goods and services produced within the country in a specified period of time (usually a
365–day year). Second, it is equal to the sum of the value added at every stage of production by all
the industries, plus taxes and minus subsidies on products. Third, it is equal to the sum of the
income generated by

How Gross Domestic Product ( Gdp ) Is Calculated
US020C438A Principle of Economics Hayley Hart Professor Steven Drinkwater Describe how
Gross Domestic product (GDP) is calculated; discuss how good a measure GDP is of a country's
economic wellbeing. Gross Domestic Product (GDP) can be calculated in three ways, Income,
expenditure and output methods. Mankiw and Taylor(2014) says that in the UK The Office of
National Statistics produces a single measure of GDP to do this, three approaches are used (Income,
Expenditure and Production) the equal amount of all three of these approaches are then balanced out
to create an overall final figure. The expenditure approach is the most commonly used method, it is
based on the value of total expenditure goods and services in a current year. it sums up the level of
consumption of goods and services, gross, investment, government purchase and exports and
imports. The basic formula for the expenditure approach is; Y = C + I + G + NX Mankiw and
Taylor(2014) Consumption is the spending made by residential properties, Investment is spending
on equipment or a service to use or sell, government purchases is the spending on goods and
services by local, state and national governments, the spending on produced goods and services by
local state and national governments and net exports are the spending on products or services from
across the globe minus spending on foreign goods by domestic residents. GNP stands for Gross
National Product and is another measure of income, it's the total income

Growth Rates
What factors might contribute to a low or high growth rates in a country?
There are three categories of factors that contribute to a low or high growth rates. These categories
are the demand factor, the efficiency factor, and supply factors. Government spending or exports can
lead to a higher to aggregate demand and higher economic growth. "Economic growth requires
increases in total spending to realize the output gain made available by increased production
capacity" (McConnell, 2012, p. 513). One way to accomplish this is by lowering interest rates.
Lower interest rates make borrowing cheaper. This encourages consumers to spend more money.
Efficiency is attained when resources are used "...in the least costly way to produce the ... Show
more content on Helpwriting.net ...
Gross domestic product(GDP) is defined as "the total market value of all final goods and services
produced annually within the boundaries of the United States, whether by U.S. or foreign–supplied
resources" (McConnell, 2012, p. G11). GDP has limitations when measuring total output and
national welfare because it is a monetary value. GDP only counts final goods and ignores
intermediate goods. If intermediate goods were allowed, multiple counting would occur. GDP is not
necessarily a good measure of social welfare because it doesn 't adjust production for negative
externalities. The reason that GDP is an imperfect measure of social welfare is that it does not
measure many goods and services that have real economic value. The most obvious case is leisure.
Leisure is a normal good. GDP excludes non production transactions "because they have nothing to
do with the generation of final goods" (McConnell, 2012, p. 487).There are two types financial
transactions and secondhand sales. Financial transactions include public transfer payments, private
transfer payments, and stock market transactions (McConnell, 2012, pp. 487–488). Also illegal
goods and resource depletion are excluded. GDP is not reduced by pollution that is produced in
processes. Is the GDP measure underestimating or overestimating national production and total
income in the economy? Why?
GDP is in fact underestimating national production and total national

Essay on ECON 2155
ECON (2155) DOCUMENT
DATA EXERCISE #1
Consists of four parts
Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade)
Complete the following exercise
Visit the Bureau of Economic Analysis Web site at www.bea.gov In U.S. Economic Accounts under
National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National
Income and Product Account (NIPA) Historical Tables, click "Begin using the data", and use Section
1 – Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four
quarters.
a) Present the information that you received in your project as a table.
b) Write a report (1 page double – spaced), which contains ... Show more content on Helpwriting.net
...
What is the difference between gross domestic product (GDP) and gross national product (GNP)?
What is the difference in what GDP measures compared to GNP?
2. Based on the table, what calculations must you make to determine GNP from GDP?
3. What is national income (NI)? What does NI measure?
4. Which was higher in this year, GNP or NI? By how much?
5. What calculations must you make to determine NI from GNP?
6. NI is composed of a number of categories. What category makes up the largest portion of NI?
Part 3: GDP in Different Countries (weight 25% of the assignment grade)
Complete the following exercise:
Go to World Development Indicators database:
http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world–
development–indicators The countries for this part of the Data Exercise will be assigned by your
professor.
Select the 8 countries assigned for the project by checking the check boxes under Country.
Select the 2 data series GDP (current US$) and Population (Total) under Series.
Select the most recent year under Time.
You can now retrieve that data by clicking one of the options on the upper right of the window.
Clicking "Table" will allow you to view and copy the data for each country. Clicking "Download"
will allow you to download the data in Excel, which can then be copied into your report table.
Fill in the table below. Calculate the per capita GDP for the most recent available year for the
countries with the equation

Gdp And Total Expenditure On Purchasing A New Houses Essay
1. GDP is the monetary value allocated to all goods and services produced within a given country.
This excludes the net income accruing from abroad. GDP can be measured using the total
expenditure approach for calculating National Income as a summation of total expenditure on
commodities produced in a given economy. Any expenditure on purchasing a new houses is
excluded. The final consumption of the government is also included together with all current
expenditure. Their expenditure on fixed assets is also included. The value of the physical increase in
inventories during the course if the year is also included. The summation of all these components is
the Total Domestic Expenditure, TDE. Adding up expenditure on export to the TDE determines the
Total Final Expenditure. Subtracting all expenditure on imports from this total results to a measure
known as the GDP at market rate. Subtracting taxes on expenditure levied by the government and
adding back the total amount of subsidy leads to the arrival at a figure known as GDP at factor cost.
National income is however affected by interest, rent and profit accruing from abroad and the net of
the property income from abroad ought to be added to the GDP. This leads to the arrival at the GDP
at factor cost. GDP can also be arrived at by using factor incomes in the computation of National
Income. Under this approach, the summation of individual incomes arrives at the domestic income,
as each time something is produced and sold,

Measuring Gross Income Data Is A Measure Of Economic Welfare
Evaluate the extent to which Gross Income Data is a measure of economic welfare.
Morven Chan
Economic welfare is defined as the level prosperity and financial satisfaction of participants in an
economy. Economic welfare can often be assessed through statistics such as the level of
employment. National income statistics is defined as the value of goods and services produced in an
economic system over a period of time. National Income can be broken down into four different
parts which include Gross Domestic Product (GDP), Gross National Product (GNP), GDP per
capita, and GNP per capita. National Income is used for variety of purposes in our economy. Firstly,
national income statistics are important in that most of the government's future ... Show more
Therefore as is shown through the expenditure method, the equation for GDP becomes:
GDP=C+G+I+(X–M)
Looking at the equation we can see that the issue arises that from the equation, there is absolutely no
calculation which addresses the economic welfare of the people and thus, as an economic indicator
GDP excels, but as a welfare indicator, this could suggest that it may not be the best choice. Gross
national product of a specific country is the sum of the goods and services produced by citizens of a
country domestically and the output from external sources which are owned/part of the specific
country. The symbol used to represent gross national product is GNP and the equation for the GNP
can be simply written as:
GNP=GDP+Net property income from abroad
GNP and GDP per capita are the values for GDP and GNP divided by the population of the country.
They give an average value for the output of product per individual in the country. Before looking at
the cons of national income statistics, we must first note that there are redeeming points to using
national income. For one, national income does a very good job of representing growth in the
economy. However as we know economic growth is not necessarily always a positive thing.
The issue with wealth distribution is one of the many reasons why national income

The Human Development Index Is a Better Measure of...
I will advance the thesis that the Human Development Index (HDI) is a better measure of economic
performance than the Gross Domestic Product (GDP) per capita. By saying that the HDI is a better
system to measure economic performance, I mean that because the HDI highlights the trend
between longevity, education and economic growth, it calculates a better analysis of an economy
(Costa, Steckel 1997, p. 71). In contrast, the GDP per capita only accounts for the gross domestic
product without paying any attention to other factors of an economy (Hawthorn, Sen 1997, p. 60).
With this being said, my thesis asserts that the HDI is a better measure for economic performance
because it considers significant factors that play large roles in an ... Show more content on
Helpwriting.net ...
As I just defended the importance of considering longevity in an economy, I will now explain why it
is imperative to consider education when calculating the development and performance of an
economy. To begin, when a population is educated they will have the opportunity to adapt new
technology and new ideas to enhance their productivity and output, which is an essential part of
competing against other economies in the international arena. To be more specific, when a
population is able to adapt new technology and idea they increase their speed of production, which,
in turn, increases their output, which means, in simple terms, new technology and ideas increase an
economy's growth because it allows them to produce more, faster and trade more, faster. This is best
explained in Invest in Humans, Technological Diffusion, and Economic Growth that says, "the
better educated farmer is quicker to adopt profitable new processes and products since, for him, the
expected payoff from innovation is likely to be greater and the risk likely to be smaller; for he is
better able to discriminate between promising and unpromising ideas, and hence les likely to make
mistakes (Nelson, Phelps 1966, p.70)", while the less educated farmer is prudent to delay the
introduction of new technology until he has concrete evidence of its profitability, which is often
from his

The Gross Domestic Product ( Gdp )
The Gross Domestic Product (GDP) represents the monetary value of all the finished goods and
services produced within a country 's geographic borders in a determined period of time. It is used
as a quantitative measure of the total economic activity of a nation, and it is usually calculated on an
annual basis. The GDP can be determined in three different ways: output or production measure,
income measure, and expenditure measure. In theory, it should all give the same number. The output
or production approach defines the GDP as the value of the goods and services produced by all
sectors of the economy. It is calculated by adding the value of the total sales of goods, minus the
intermediate consumption used to produce the final goods sold. The income approach of calculating
GDP is defined as the total income earned by the factors of production within an economy. First,
you should determine the National Income by adding all the wages, rents, interests, and profits
earned within an specific period of time. Then, it is added the value of Sales Taxes, Depreciation and
Net Foreign Factor Income, and the final result will be GDP. The expenditure approach identifies
four possible destinations for the total production of an economy. This output can be consumed by
households, businesses, the governmentor the foreign sector. That is why the GDP can be
calculating by adding the total amount of the purchases made within an economy in a period of time.
From this approach we can identify

BEA 2015: Table Analysis
The table I have developed is using from BEA website section 1.7.5 allows use to review the
economic change year 2015. This fiscal year has been broken down in the four courts label I, II, III,
and IV. In these four court we survey the information about gross domestic product, gross national
product, net production, net income, and personal income. Bases on the information these categories
provide by BEA we are see if there has increase or decrease in production and income through the
2015. From our data it seem like every four months both production and income have been
increasing across the board. When review the gross domestic product and gross national product you
must realize there not the same. May people often cross reference these

The Study Of Macroeconomics

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The Study Of Macroeconomics