Merriam-Webster (2015) defines gross domestic product (GDP) as “the total value of the goods and services produced by the people of a nation during a year not including the value of income earned in foreign countries.” (merriam-webster.com). The GDP is one of the main indicators used to determine the condition of a country’s economy as it represents economic growth and production. Economic growth and production, positive or negative, has a major impact on most everyone within that economy. There
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Real GDP for 2009? The Real GDP for 2009 was 13,973.7 a. What does GDP tell us? The GDP gives information regarding the country’s economy in regards to total money value on all final goods and services that are produced in the economy over any given time frame - annually or quarterly. Real GDP accounts for price changes especially with inflation whereas nominal GDP does not. b. How did GDP change from 2008? In the first and second quarter, GDP increased. In the third quarter, GDP started
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Do Oil Revenues Affect Taxation? Christopher Skutnik Oil is an essential commodity to humans, as it powers many goods and services that give us humans a lot of utility. For oil producing countries, the prospects of exporting barrels of oil can be very exciting for fiscal revenues. The effect of oil production on fiscal revenues is largely due to the world oil price. In the last year and a half the price of oil has plummeted from $104/barrel to about $41/barrel
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product (GDP), real GDP, nominal GDP, unemployment rate, inflation rate, and interest rate. GDP is a way to gauge the health of a country’s economy. GDP represents the entire dollar value of all goods and services produced over a certain time frame. There are two basic ways to compute GDP, the income approach and the expenditure approach. The income approach basically means adding up what everyone earned in a year. The expenditure approach involves adding up what everyone spent. Real GDP is often
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stagflation. (d) In the long run, the quantity of real GDP is equal to potential GDP. 4. Find an incorrect statement. (a) The short run aggregate supply (SAS) curve slopes upward. (b) With an inflationary gap, money wage rate begins to rise and the SAS curve shifts leftward. (c) A leftward shift in the short run aggregate supply (SAS) curve causes stagflation. (d) In the long run, the quantity of real GDP is greater than potential GDP. 5. With the given money wage rate, as the price level
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product, Real GDP, Nominal GDP, Unemployment rate, Inflation rate and Interest rate. Part 2 will discuss how the following economic activities: purchasing of groceries, massive layoff of employees and decrease in taxes affects the government, households and businesses. Macroeconomic Terms: Gross Domestic Product The Gross domestic product which is referred to as the GDP for short, is best defined as the as the main indicator used to calculate the state of a country’s economy. The GDP is the total
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Gross Domestic Product (GDP) is a measure of a country’s value based on goods produced, services rendered, government spending, and the difference of exports minus imports. The Real GDP is the measure of the output of GDP that is acclimated for inflation or deflation. It is also the amount of the nation’s net exports during a given term say a month or a year, which is expressed in a dollar amount. Economists measure, record, chart, and analyze the trends and fluctuations in the GDP. They use the data
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__ 19. ____ 24. ____ 29. ____ 5. ____ 10. ____ 15. ____ 20. ____ 25. ____ 30. __ _ 1) If real GDP for 2001 was $1000 billion and nominal GDP was $500, then: (a) the implicit GDP deflator for 2001 was 0.5 (b) the implicit GDP deflator for 2001 was 2 (c) the implicit GDP deflator for 2001 was 500 (d) the implicit GDP deflator for 2001 was -500 2) If real GDP in China is growing at a rate of 6.93% percent per year, how long will it take to double: (a) 1 year (b) 10 years
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Domestic Product 3. Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2011- 12 is likely to attain a level of Rs. 52,22,027 crore, as against the Quick Estimates of GDP for the year 2010-11 of Rs. 48,85,954 crore, released on 31 st January 2012. The growth in GDP during 2011-12 is estimated at 6.9 per cent as compared to the growth rate of 8.4 per cent in 2010-11. 4 . The growth rate of 6.9 per cent in GDP during 2011-12 has been due to the growth
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calculation. GDP=C+G+I+NX. GDP can be used as sign of a country’s ability to sustain the standard way of life for its people. Critics of its use as a measure argue that there are many more variables underground that go unreported and unaccounted for. The gap these variables create are large enough that they would have a significant effect on the results of calculation of GDP. An inflation-corrected view of the GDP is the description of ‘real GDP’. It gives a more accurate numerical value of GDP. ‘Real-time’
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