Comparative Analysis of the Dynamics of Gross Domestic Product and Inflation Rates
MACROECONOMIC
FINAL PAPER
TOPIC: “COMPARATIVE ANALYSIS OF THE DYNAMICS OF GROSS DOMESTIC PRODUCT AND INFLATION RATES”
TABLE OF CONTENT
1. Theoretical approach of the GDP and inflation rate, and the link between both 3
1.1. The Gross Domestic Product 3
1.2. Inflation rate 4
The calculation of the inflation rate: 5
1.3. the link between inflation rate and GDP 5
How to calculate: 6
1. France 7
1.1. GDP 7
1.1.1. Composition of the GDP in France 7
1.1.1.1. GDP – Composition By sector 7
1.1.1.2. GDP – Purchasing power parity 7
1.1.1.3. GDP – Real Growth Rate 9
1.1.2. Explanation of the evolution of the GDP 10
1.2. Inflation 11
1.2.1. Inflation rate (consumer prices) 11
1.2.2. Explanation of the evolution of the inflation rate 12
2. Lithuania 13
2.1. GDP 13
2.1.1. Composition of the GDP in Lithuania 13
2.1.1.1. GDP – Composition By sector 13
2.1.1.2. GDP – Purchasing power parity 13
2.1.1.3. GDP – Real Growth Rate 14
2.1.2. Explanation of the evolution of the GDP 15
2.2. Inflation 16
2.2.1. Inflation rate (consumer prices) 16
2.2.2. Explanation of the evolution of the inflation rate 16
3. Comparison between GDP of Lithuania and France 17
3.1. GDP 17
3.1.1. GDP – Composition by sector 17
3.1.2. GDP – Purchasing power parity 18
Lithuania 18
France 19
3.1.3. GDP Real Growth Rate 21
3.2. Inflation 23
3.2.1. Inflation Rate (CONSUMER Prices) 23
4. Conclusion 25
1. THEORETICAL APPROACH OF THE GDP AND INFLATION RATE, AND THE LINK BETWEEN BOTH
1.1. THE GROSS DOMESTIC PRODUCT
The gross domestic product (GDP) is a measure of a country's overall economic output. It is the market value of all final goods and services made within the borders of a country in a year.
GDP can be determined in three ways, all of which should in principle give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.
The most direct of the three is the product
FINAL PAPER
TOPIC: “COMPARATIVE ANALYSIS OF THE DYNAMICS OF GROSS DOMESTIC PRODUCT AND INFLATION RATES”
TABLE OF CONTENT
1. Theoretical approach of the GDP and inflation rate, and the link between both 3
1.1. The Gross Domestic Product 3
1.2. Inflation rate 4
The calculation of the inflation rate: 5
1.3. the link between inflation rate and GDP 5
How to calculate: 6
1. France 7
1.1. GDP 7
1.1.1. Composition of the GDP in France 7
1.1.1.1. GDP – Composition By sector 7
1.1.1.2. GDP – Purchasing power parity 7
1.1.1.3. GDP – Real Growth Rate 9
1.1.2. Explanation of the evolution of the GDP 10
1.2. Inflation 11
1.2.1. Inflation rate (consumer prices) 11
1.2.2. Explanation of the evolution of the inflation rate 12
2. Lithuania 13
2.1. GDP 13
2.1.1. Composition of the GDP in Lithuania 13
2.1.1.1. GDP – Composition By sector 13
2.1.1.2. GDP – Purchasing power parity 13
2.1.1.3. GDP – Real Growth Rate 14
2.1.2. Explanation of the evolution of the GDP 15
2.2. Inflation 16
2.2.1. Inflation rate (consumer prices) 16
2.2.2. Explanation of the evolution of the inflation rate 16
3. Comparison between GDP of Lithuania and France 17
3.1. GDP 17
3.1.1. GDP – Composition by sector 17
3.1.2. GDP – Purchasing power parity 18
Lithuania 18
France 19
3.1.3. GDP Real Growth Rate 21
3.2. Inflation 23
3.2.1. Inflation Rate (CONSUMER Prices) 23
4. Conclusion 25
1. THEORETICAL APPROACH OF THE GDP AND INFLATION RATE, AND THE LINK BETWEEN BOTH
1.1. THE GROSS DOMESTIC PRODUCT
The gross domestic product (GDP) is a measure of a country's overall economic output. It is the market value of all final goods and services made within the borders of a country in a year.
GDP can be determined in three ways, all of which should in principle give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.
The most direct of the three is the product