the health of a country’s economy. GDP represents the total dollar value of all goods and services produced over a specific time period (Koba, 2011). The figures are released every business quarter by the Business Economic Analysis. What does the data mean and how will it affect our U.S. citizens. U.S. Gross Domestic Product Growth Rate Going Forward This paper will cover the United States Gross Domestic Product (GDP). This paper will provide trends,
Words: 643 - Pages: 3
the inflation rate, the real GDP growth and primary deficit remain constant for the next year, we can compute the projected next year end debt as a percentage of GDP by using the equation: dt+1=dt+i-πdt-grdt-st+1 In this case, dt is the public debt (as % of GDP) of 2011, which is 88%; i is the government interest rate 7% according to our assumption; π is the inflation rate, which was 2% if it is held constant constant in the next year; gr is -1%, the real GDP growth; and -st+1 is the primary
Words: 1678 - Pages: 7
domestic product (GDP) growth. There are some data including GDP of countries in 2010 and 2009, budget surplus or, total central government debt and unemployment and government debt in U.S.A. Those data have units and definitions below. Definitions: GDP 2010: GDP 2009: Budget surplus/deficit: GovtDebt: Unemployment Debt Gross Domestic Product in 2010 (millions constant 2000 US$) Gross Domestic Product in 2009 (millions constant 2000 US$) Budget surplus/deficit as % of GDP in 2010 Total central
Words: 891 - Pages: 4
• • • • GDP Inflation Rate Unemployment Rate Trade and Budget Deficits Gross Domestic Product • First thing we look at (its rate of growth) • Aggregate output: Not easy! – Sum of apples and oranges – Double-counting • Example A Simple Economy • Steel Company – Revenue from sales – Expenses (wages) – Profit $100 80 20 $210 $70 100 • Car Company – Revenue from sales – Expenses • Wages • Steel purchases – Profit 40 • What is this economy’s GDP? Calculating
Words: 352 - Pages: 2
is a sense of disappointment too. Social indicators are among the worst in developing countries. The economy of Pakistan is the 27th largest in the world in terms of purchasing power parity (PPP), and 44th largest in terms of nominal GDP. 1950's & 1960's * GDP of agriculture declined, of industry doubled, of construction increased, electricity / gas and that of the services sector also increased. * more jobs were provided like transport, communication, construction and services *
Words: 956 - Pages: 4
A. 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? Natural Real GDP – Real GDP/ Natural Real GDP $100 - $97/100 = 3 The GDP gap is 3% B. Suppose 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? By the second year the natural real GDP will be $108. In order for the gap to close the real GDP would have to rise by the
Words: 308 - Pages: 2
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? 3% gap between the two. B. Suppose 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? Real GDP must have risen more than $4 billion a year to close the gap between the natural real GDP. Real GDP must have increased by $11 billion to equal natural real GDP after two years.
Words: 262 - Pages: 2
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
Words: 1530 - Pages: 7
Fundamentals of Macroeconomics Paper: Part I Gross Domestic Products or GDP is a measure that is used in Macroeconomics to measure the welfare of a country within a specific time frame. In most cases GDP is calculated each year and it takes factors such as, imports, exports, investments, and the compositions made from citizens of that specific country within that specific time frame. There is one simple reason why GDP is calculated each year, it helps determine whether the country is in a good
Words: 1068 - Pages: 5
important is economic growth? Does it really make people better off in the long run? Or, as the question is sometimes misleadingly put, “Can money buy happiness?” a) Why is that last question misleading? Answer: Economic growth is the increase of real GDP (gross domestic product) in a given year, i.e. the rise in the country’s production of services and goods, adjusted with inflation rate. It means that economic growth reflects how well the county’s citizens improve their well being and standard of living
Words: 1639 - Pages: 7
