Microeconomics (b) Economic Theory: A Process of Simplification 3. Actual and Natural Real GDP (a) Unemployment: Actual and Natural (b) Real GDP and the Three Macro Concepts 4. Macroeconomics in the Short Run and Long Run (a) The Short Run: Business Cycles (b) Business Cycle Concepts (c) The Long Run: Economic Growth 5. Case Study: A Century of Business Cycles (a) Real GDP (b) Unemployment 6. Macroeconomics at the Extremes (a) Unemployment in the Great Depression
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three factors focused on in this report are GDP growth, Government Debt and Budget surplus/deficit. In the data provided there is a very large standard deviation for GDP (see appendix). In both 2009 and 2010 the standard deviation was over four and a half times larger than the average of GDP itself. This will make it hard to create general assumptions for all countries to assess whether different factors correlate with each other. Even other factors such as GDP growth have relatively large standard deviations
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| | | |Possible levels |Real domestic | | | |of employment |output (GDP=DI) |Consumption |Saving | |(millions) |(billions) |(billions) |(billions) | | |
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GDP and its Flaws The Gross domestic product of a country primarily indicates the state that the country’s economy is in. Gross domestic product (GDP) is a measure of all market activity, as well as all the money that changes hands in a country during a fiscal period. GDP is usually calculated on an annual basis and it measures the total output of all goods and services produced in a country. It is a standard measure of the country’s total economic activity. As a country’s GDP rises, it is an
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formulas and some graphs as well as showing the best foramatting. Note 2: for non-honors students. The material and the order of the material may vary somewhat from that presented in the regular sequence. CHAPTER 1: CIRCULAR FLOW AND GDP The Circular Flow Model Our next economic model represents the main participants in the economy and how they interact. The two main sectors of an economy are the households and the producers. Producers make the goods and services and sell
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Suppose that real GDP is currently $97 billion per year and natural real GDP is currently $100 billion. Measured as a percentage, what is the GDP gap? This would be: $97b-$100b = -3/100 The GDP gap would be -3%, showing a recession in the economy. b) Suppose that natural real GDP is growing by $4 billion per year. By how much must real GDP have risen after two years to close the GDP gap? Natural GDP grows $4 billion per year which means that real GDP would have to
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this statistic is measured. Here is a definition of GDP that focuses on GDP as a measure of total expenditure: • Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time. This definition might seem simple enough. But in fact, many subtle issues arise when computing an economy’s GDP. Let’s therefore consider each phrase in this definition with some care. “GDP Is the Market Value . . .” You have probably heard the
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Part I: Data Collection Exercises 1) The year-over-year Gross Domestic Product (GDP) on quarterly basis. [CHINA] List of China's quarterly GDP 2005-2014 | (Revison based on the 3rd Economic Census 2013,[1] in millions of CNY) | year | quarter 1 | quarter 2 | quarter 3 | quarter 4 | | GDP | growth (%) | GDP | growth (%) | GDP | growth (%) | GDP | growth (%) | p2014 | 13,292,020 | 7.9 | 14,582,020 | 9 | 15,628,150 | 8.5 | 20,144,080 | 7.7 | 2013 | 12,317,080 | 10.2 | 13,374,040
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quantities of oil, petroleum, and natural gas as well as fish in the offshore waters. | Petroleum, natural gas, fish. | Population | 1.334 million | 2.155 million | Per Capita Income | $29,800 | $102,100 | Rate of Saving as % of GDP | 27.6% of GDP | 54.1% of GDP | Rate of Inflation | 3.1% | 3.1% | Major Industries | Petroleum processing and refining, AluminumSmelting, IronPelletization, Fertilizers, Islamic and Offshore Banking, Insurance, Ship Repairing, Tourism. | Crude Oil Production
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Definition of Gross Domestic Product (GDP) - GDP considers only the value of final output. Avoid the problem of double counting. To avoid double counting, we sum up only the value added of each industry (Total output = Total expenditure = Total income). - Real GDP Formula: Nominal GDP/GDP deflator x 100 - GDP Deflator: Nominal GDP/Real GDP x 100 Definition of Expenditure/Income approach - The expenditure approach measures GDP by adding the total spending on goods and
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