GDP & GNP Gross Domestic Product (GDP) – is one of the primary indicators to measure the wealth of a country * the value of final goods produced or total income earned by domestically-located factors of production (land, labor, capital) regardless of nationality 2 TYPES OF GDP 1. Nominal GDP – measure of GDP with current prices 2. Real GDP - measure of GDP that put into account inflation HOW TO MEASURE GDP? 1. The Expenditure Approach - is based on expenditures incurred
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alternative to GDP, based on Buddhist beliefs; it puts value in the happiness, not money when valuing a country. It is the only country in the world that uses this system of measurement. Although this system has the best intentions for the people and its surrounding environment, it is not the best overall strategy because it doesn’t adequately incorporate economic growth, which is very important to a country’s well-being. At first glance it seems like a truly distinct, altruistic approach to GDP but it would
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Russian GDP Following the section about Russian output, we now turn to the BRICS country GDP, Inflation, and Monetary Policy. All three of these areas of the Russian economy depend immensely on the product that is 70% of Russian export: Oil. We see that each year there is a dip in the price of oil Russian (for example 1998 and 2008) we see a dip in GDP and a rise in inflation. Hence, the monetary policy set by the Central Bank of Russia is contingent upon the gas price. The Russian GDP has been
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THE RELATIONSHIP BETWEEN STOCK MARKET AND ECONOMIC GROWTH IN ASEAN COUNTRIES BY KOH YONG HONG CHOONG PIK SIN LEE SOCK MEI NG HON MENG LEONG MUN HONG A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS) BANKING AND FINANCE UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF FINANCE MARCH 2016 Copyright @ 2016 ALL RIGHTS RESERVED
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Economists compute GDP by totaling consumption (the amount consumers spend on goods, amount of money put into markets, government spending and value of goods exported from other countries). An increase in GDP means that the economy is growing and that businesses are producing and selling more products or services. It also shows the country how they can reinvest their income. I believe that the welfare of a nation can be directly affected by a measurement of national income. The real GDP (per capita) tells
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also need this breakdown to be able to understand and project the impact of trends in intangible assets by type on the trend growth in real GDP and prices. The article “BEA Revises Estimate of Annualized U.S. GDP Economic Growth to 1.73%” Economic/US Economy” mentioned that the BEA found in their first revision to their estimate of the second quarter 2012 GDP that the annualized rate of U.S. domestic economic growth was 1.73%, up 0.19% from their initial estimate -- but still down about a quarter
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Capstone GDP How to calculate the GDP? - Its consumer spending, investment, government purchases and net exports. The GDP is the statistics of the current economic state. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. The current trends and statistics of the GDP are made
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Flaws of GDP As a measure of economic development, GDP is a useful but fundamentally flawed statistic. Some examples of the deficiencies of GDP as a measure of economic development are detailed below. Imputations When computing GDP, goods and services sold in the marketplace are valued at market prices. However, some goods are not sold in the marketplace, and these do not have market prices. Thus the value of these items has to be estimated, or imputed. This is especially true of housing
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GDP of a country is market value of all reported finished goods and services in a country in a particular year. GDP measures the financial state of the country. Per capita income is a good indicator of economic wellbeing, but it is not an accurate measure. Per capita income ignores many important factors which play very important role in the wellbeing of the individuals as well as the country. First factor which should be considered along with GDP to know the exact wellbeing of individuals and
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Assignment 2: What is Gross Domestic Product? 1. What was Real GDP for 2009? Answer-300,000 billion a. What does GDP tell us? Answer - GDP is the total market value of all final goods and services produced in our economy during a one-year period. GDP=consumption+interest+government+(export-import) b. How did GDP change from 2008? Answer – Growth rate dropped by 220.262 c. What caused these changes? Answer – The economy was facing a recession.
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