Project—— The real meaning of GDP I. Background Since 1985‚ when the State Council of China approved to establish a System of National Accounting (SNA)‚ using the gross domestic product (GDP) to measure the national economy‚ more and more people are getting familiar to this word. We must have heard about it for countless times. At the end of 2010‚ China has overtaken Japan as the world’s second biggest economy in terms of GDP‚ which has drawn attention all around the world and has made Chinese
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Introduction What is GDP? The Gross Domestic Product (GDP) has been the most widely used indicator of a nation’s welfare since 1944. For decades‚ people regard countries with higher GDP as stronger ones and whatever is good for the GDP is also good for the nation. But is that true? And what does GDP actually measure? In my opinion‚ GDP only measures part of the economic growth‚ while ignores the economic health and human well-being. First of all‚ GDP counts all the money transitions of goods and
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| London School of Commerce Belgrade | A Critical Analysis Of Real GDP Subject: Managerial Economics Mentor: Student: Maja Paunovic Mirko Lazarevic Belgrade 2013 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 3 INTRODUCTION 2. ADVANTAGES OF REAL GDP 4 3. LIMITATIONS AND SHORTCOMINGS OF REAL GDP 4 3.1 RENEWABLE FINITE RESOURCE 5 3.2 OLD AND CHILD CARE 5 3.3 UNDERGROUND ECONOMY 5 3.4 UNEMPLOYMENT 6 3.5 THE INFLATION RATE 6
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Sample Real GDP Calculation Econ 102-1 Alley Nominal GDP is calculated by summing the value of goods and services produced in a given year using the prices of these outputs in that year. If the general price level increases or decreases from one year to the next‚ it is difficult to compare the amount of output that a country produces across different years. To correct for this‚ we want to value output in every year using the same prices. In other words‚ we calculate real GDP. Consider the
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Definition of GDP Total market value of All the goods and services Produced By the factors of production Located in a country During a certain period of time Except those produced by households for household consumption. 1 Total market value of GDP = P1 × Q1 + P2 × Q2 +∙∙∙∙ Q1 = 10 pounds P1 = $2/pound Q2 = 4 units P2 = $100 each GDP = $2 × 10 + $100 × 4 = $420 2 All the goods and services Don’t forget services. 3 Remember: Include ALL the goods and services produced
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as a whole‚ rather than individual markets. This includes national‚ regional‚ and global economies.[1][2] With microeconomics‚ macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income‚ output‚ consumption‚ unemployment‚ inflation‚ savings‚ investment
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Gross Domestic Product‚ Which will be presented as the abbreviation GDP below‚ is a measure of the economic situation within a territorial area. Moreover‚ it is defined as Total market value of all goods and services that produced in the economy during a given time period. Personal Consumption Expenditure‚ equally important‚ refers to the fees paid by people in order to satisfy their daily needs. It’s an important indicator that measuring consumers’ spending levels on goods and services‚ for example
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Student Name: Jeffrey Ang Schoggi Wong Bobby Kwok Yu Hoi Shan Michelle Instructor : Ms. Maggie Pua Submission Date : 18/12/2013 Table of Contents Company Background Our company call that Jesman is since 1970’s Our company is selling sport shoes such as basketball shoes and football shoes. Our first shop was opened in Hong Kong. After a few years‚ we started to have more than one shops. Mission and vision Our company want become an international sports shoes
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Chapter 7 Measuring a nation’s income The economy’s income and expenditure GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. GDP can perform the trick of measuring both total expenditure because these two things are really nearly the same. For an economy as a whole‚ generally‚ income must equal expenditure This is true because: An economy’s income is the same as its expenditure because every
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years 2010 and 2011. As seen in the graph‚ Japan’s economy made a plunge from year 2007 to year 2008‚ where GDP fell from ¥525‚469‚000 to ¥505‚794‚000 at a rate of 3.74%. This recession is the result of the world financial crisis that occurs from year 2007 to 2009. From the respective years of 2008 to 2009‚ Japan’s economy had made a further plummet by 2.02%. The sharp decline in real GDP of Japan results in an economic trough at ¥495‚570‚000 in the business cycle. Economists estimates that it was
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