Decrease in GDP growth
... 3. Explain the concept of potential output and its relationship to the “output gap” ...
... 3. Explain the concept of potential output and its relationship to the “output gap” ...
What Is Gross Domestic Product?
... purchase the same amount of goods and services in each country (see “Back to Basics” in the March 2007 issue of Finance & Development). There is a large gap between market and PPP-based exchange rates in emerging market and developing countries. For most emerging market and developing countries, the ...
... purchase the same amount of goods and services in each country (see “Back to Basics” in the March 2007 issue of Finance & Development). There is a large gap between market and PPP-based exchange rates in emerging market and developing countries. For most emerging market and developing countries, the ...
PROBLEM SET 1 – SOLUTIONS 14.02 Macroeconomics February 22, 2006
... 1. The annual growth rate of GDP was 0.8% in 2001, so the positive growth rate indicates there was in fact no “recession of 2001.” False. Although the growth rate remained positive for the year as a whole, it was negative for the first three quarters in 2001, so economists refer to this period as th ...
... 1. The annual growth rate of GDP was 0.8% in 2001, so the positive growth rate indicates there was in fact no “recession of 2001.” False. Although the growth rate remained positive for the year as a whole, it was negative for the first three quarters in 2001, so economists refer to this period as th ...
Unemployment - La Salle High School
... GDP does not measure goods and services that people make or do themselves, such as caring for children, mowing lawns, or cooking dinner. Negative Externalities Unintended economic side effects, such as pollution, have a monetary value that is often not reflected in GDP. The Underground Economy There ...
... GDP does not measure goods and services that people make or do themselves, such as caring for children, mowing lawns, or cooking dinner. Negative Externalities Unintended economic side effects, such as pollution, have a monetary value that is often not reflected in GDP. The Underground Economy There ...
national income accounting
... They’re just transfers of an existing product from one person to another. New Battery place in a used car is counted ...
... They’re just transfers of an existing product from one person to another. New Battery place in a used car is counted ...
Macroeconomics Questions (T/F, fill
... d. Real per capita NNP b. Real GDP e. Aggregate GNP c.Nominal GNP f. Nominal per capita GDP Of course a real per capita measure is best – Real per capita Net National Product, which counts all incomes earned by citizens and adjusts for depreciation, is better than Real per capita GDP. _False__23. Th ...
... d. Real per capita NNP b. Real GDP e. Aggregate GNP c.Nominal GNP f. Nominal per capita GDP Of course a real per capita measure is best – Real per capita Net National Product, which counts all incomes earned by citizens and adjusts for depreciation, is better than Real per capita GDP. _False__23. Th ...
Problem Session-2
... • Suppose you asked someone who has not taken an economics class what makes a dollar bill have value. What do you think he or she would say? Would he or she be correct? • ANSWER: People often think that a dollar bill is backed by gold or silver. This is incorrect, since it is "fiat" money, backed on ...
... • Suppose you asked someone who has not taken an economics class what makes a dollar bill have value. What do you think he or she would say? Would he or she be correct? • ANSWER: People often think that a dollar bill is backed by gold or silver. This is incorrect, since it is "fiat" money, backed on ...
Econ Exam 1 Chapter 1- The Bid Ideas Objective of Economics: use
... 1. Per capita GDP varies enormously among nations 2. Everyone used to be poor 3. There are growth miracles and growth disasters The Rule of 70 – how long does it take for income in a country to double? - doubling time = 70/growth rate The US is one of the wealthiest countries due to long-run steady ...
... 1. Per capita GDP varies enormously among nations 2. Everyone used to be poor 3. There are growth miracles and growth disasters The Rule of 70 – how long does it take for income in a country to double? - doubling time = 70/growth rate The US is one of the wealthiest countries due to long-run steady ...
Laborium 3 i 4
... Go to Eurostat webpage and download the data on: a) GDP per capita in EUR in 2013 for each of the EU 28 countries b) GDP per capita in PPS in 2013 for each of the EU 28 countries c) For which of the countries the differences are biggest in positive or negative term. Comment 2. Recent trends in devel ...
... Go to Eurostat webpage and download the data on: a) GDP per capita in EUR in 2013 for each of the EU 28 countries b) GDP per capita in PPS in 2013 for each of the EU 28 countries c) For which of the countries the differences are biggest in positive or negative term. Comment 2. Recent trends in devel ...
Slide 1
... 1. GROSS DOMESTIC PRODUCT (GDP) • Definition:’it is the sum of the dollar values of consumption ( C ), gross investment ( I ), government purchases of goo and services ( G ), and net export (X-M) produced within a nation during a given year” (Samuelson), 2002:434). GDP = C + I + G + (X-M) • The pur ...
... 1. GROSS DOMESTIC PRODUCT (GDP) • Definition:’it is the sum of the dollar values of consumption ( C ), gross investment ( I ), government purchases of goo and services ( G ), and net export (X-M) produced within a nation during a given year” (Samuelson), 2002:434). GDP = C + I + G + (X-M) • The pur ...
2. Worksheet 1 Calculations key
... • h. was the increase in NGDP from 2000-01 mostly due to an increase in real output or prices? • Step 1 : Determine what % NGDP increased • Step 2: Find Deflator – tell you increase in prices and then conclude the rest would = increase in RGDP (productivity) • Or • Step 2: Find % increase in RGDP a ...
... • h. was the increase in NGDP from 2000-01 mostly due to an increase in real output or prices? • Step 1 : Determine what % NGDP increased • Step 2: Find Deflator – tell you increase in prices and then conclude the rest would = increase in RGDP (productivity) • Or • Step 2: Find % increase in RGDP a ...
Economics 215 Intermediate Macroeconomics 9
... Standard deviation of the output gap to measure the volatility of the output gap. Correlation to measure the movement of one stationary time series with one another. Auto-correlation measures the persistence of stationary time series. ...
... Standard deviation of the output gap to measure the volatility of the output gap. Correlation to measure the movement of one stationary time series with one another. Auto-correlation measures the persistence of stationary time series. ...
circular flow & gdp - Madison County Schools
... used to pay for goods and services (stock transactions, welfare payments, Social Security payments): • a. Personal goods and intermediate goods • b. Illicit sales • c. Black market • d. Transfer payments and financial transfers • e. None of these ...
... used to pay for goods and services (stock transactions, welfare payments, Social Security payments): • a. Personal goods and intermediate goods • b. Illicit sales • c. Black market • d. Transfer payments and financial transfers • e. None of these ...
GDP Unit 2 Lesson 1
... is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling ...
... is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling ...
GrossDomesticProduct - Mrs. Montano's Website
... When C, I, or G increase, GDP increases. When C, I, or G decrease, GDP decreases. When exports (X) go up, GDP goes up because it means more is produced in the United States. When imports (M) go up, GDP goes down because it means people in the United States are buying what is produced in other ...
... When C, I, or G increase, GDP increases. When C, I, or G decrease, GDP decreases. When exports (X) go up, GDP goes up because it means more is produced in the United States. When imports (M) go up, GDP goes down because it means people in the United States are buying what is produced in other ...
Chapter 4:Structure of SUT
... • Source of goods and services available within the domestic territory / boundary originate from either: (i) Domestic Production (ii) Imports Total Goods & Services ...
... • Source of goods and services available within the domestic territory / boundary originate from either: (i) Domestic Production (ii) Imports Total Goods & Services ...
Nominal GDP
... • Use the GDP deflator to take out the effect of inflation and reveal real GDP. • The Base year for current SNA is 2000. • Inflation rate = rate of change of price level, 130% = (230-100)/100*100 ...
... • Use the GDP deflator to take out the effect of inflation and reveal real GDP. • The Base year for current SNA is 2000. • Inflation rate = rate of change of price level, 130% = (230-100)/100*100 ...
Problem Set 12
... 2. Personal consumption expenditures include: (A) All commodities that business firms buy. (B) The purchase prices paid for stocks and bonds by individual households. (C) The construction of residential housing. (D) All goods and services bought by households. (E) The corrected value of housewives’ ...
... 2. Personal consumption expenditures include: (A) All commodities that business firms buy. (B) The purchase prices paid for stocks and bonds by individual households. (C) The construction of residential housing. (D) All goods and services bought by households. (E) The corrected value of housewives’ ...
Chapter 7
... use are counted towards GDP. Goods sold or used in inventories are subtracted from GDP. Net Exports is the amount exported minus imports. o GDP does not include non-market activities or activities in the underground economy. ...
... use are counted towards GDP. Goods sold or used in inventories are subtracted from GDP. Net Exports is the amount exported minus imports. o GDP does not include non-market activities or activities in the underground economy. ...
Chapter 2 -- Measuring Output and The Price Level
... Goods and Services (G) Not the same as government expenditure (does not include transfer payments) In the US, the government is a purchaser, not a producer. ...
... Goods and Services (G) Not the same as government expenditure (does not include transfer payments) In the US, the government is a purchaser, not a producer. ...
File
... Fig. 9-7: Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum, while in LDCs, the average person gets only the minimum requirement or less. ...
... Fig. 9-7: Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum, while in LDCs, the average person gets only the minimum requirement or less. ...
Gross Domestic Product - White Plains Public Schools
... for tracking macroeconomic progress. E. Napp ...
... for tracking macroeconomic progress. E. Napp ...
Human Development Index (HDI)
... the labor needed to make it. It is measured by assessing the value added per worker Value added is the gross value of the product minus the costs of raw materials and energy US has a value added of $80,000 in comparison to countries such as India at ...
... the labor needed to make it. It is measured by assessing the value added per worker Value added is the gross value of the product minus the costs of raw materials and energy US has a value added of $80,000 in comparison to countries such as India at ...
Ireland topped eurozone GNP growth in 2013, with 3.4 p.c. rate
... Are there also political implications to the story of the GDP and GNP figures? Those economists emphasizing the 'austerity' story for example the Keynesian guru, Paul Krugman, that Ireland could ...
... Are there also political implications to the story of the GDP and GNP figures? Those economists emphasizing the 'austerity' story for example the Keynesian guru, Paul Krugman, that Ireland could ...
Genuine progress indicator
Genuine progress indicator, or GPI, is a metric that has been suggested to replace, or supplement, gross domestic product (GDP) as a measure of economic growth. GPI is designed to take fuller account of the health of a nation's economy by incorporating environmental and social factors which are not measured by GDP. For instance, some models of GPI decrease in value when the poverty rate increases. The GPI is used in green economics, sustainability and more inclusive types of economics by factoring in environmental and carbon footprints that businesses produce or eliminate. ""Among the indicators factored into GPI are resource depletion, pollution, and long-term environmental damage."" GDP gains double the amount when pollution is created, since it increases once upon creation (as a side-effect of some valuable process) and again when the pollution is cleaned up, whereas GPI counts the initial pollution as a loss rather than a gain, generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the mean time. While quantifying costs and benefits of these environmental and social externalities is a difficult task, ""Earthster-type databases could bring more precision and currency to GPI's metrics."" ""Another movement in economics that might embrace such data is the attempt to 'internalize externalities' - that is, to make companies bear the costs"" of the pollution they create (rather than having the government bear that cost) ""by taxing their goods proportionally to their negative eco-impacts.""GPI is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country is a negative or positive factor in overall health and well-being. By accounting for the costs borne by the society as a whole to repair or control pollution, poverty and prosperity GPI balances GDP spending against external costs. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between the overall ""shift in the 'value basis' of a product, adding its ecological impacts into the equation.""(Ch. 10.3)Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the Net Profit is the Gross Profit minus the costs incurred; the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs. Accordingly, the GPI will be zero if the financial costs of poverty and pollution equal the financial gains in production of goods and services, all other factors being constant.