Mr. Mayer AP Macroeconomics
... – The various phases of the business cycle last for different amounts of time. – In recent history, expansions have lasted years longer than have recessions. – The Great Depression II is the most notable example of a long recession/trough ...
... – The various phases of the business cycle last for different amounts of time. – In recent history, expansions have lasted years longer than have recessions. – The Great Depression II is the most notable example of a long recession/trough ...
Mr. Mayer AP Macroeconomics
... ◦ The various phases of the business cycle last for different amounts of time. ◦ In recent history, expansions have lasted years longer than have recessions. ◦ The Great Depression is the most notable example of a ...
... ◦ The various phases of the business cycle last for different amounts of time. ◦ In recent history, expansions have lasted years longer than have recessions. ◦ The Great Depression is the most notable example of a ...
What components of GDP (if any) would each of the following
... Consumption increases because a refrigerator is a good purchased by a household. Investment increases because a house is an investment good. Consumption increases because a car is a good purchased by a household, but investment decreases because the car in Ford’s inventory had been counted as an inv ...
... Consumption increases because a refrigerator is a good purchased by a household. Investment increases because a house is an investment good. Consumption increases because a car is a good purchased by a household, but investment decreases because the car in Ford’s inventory had been counted as an inv ...
ECON 222 Macroeconomic Theory I Winter 2015 Assignment 1 Due
... grown over the period 2010 to 2014? b) Assume 2010 is the base year and calculate real GDP for each year. By what percentage does real GDP increase in each year compared to the base year? Calculate real GDP growth for the years 2011 to 2014 and compare with the nominal GDP growth. c) Calculate the G ...
... grown over the period 2010 to 2014? b) Assume 2010 is the base year and calculate real GDP for each year. By what percentage does real GDP increase in each year compared to the base year? Calculate real GDP growth for the years 2011 to 2014 and compare with the nominal GDP growth. c) Calculate the G ...
Lecture 1 - UTA Economics
... Policymakers use real GDP figures to compare economic output in different periods, in order to see if we are achieving the goal of high economic growth. Real GDP figures can be compared to see whether an economy has grown because they have been adjusted to take price changes into account. For exampl ...
... Policymakers use real GDP figures to compare economic output in different periods, in order to see if we are achieving the goal of high economic growth. Real GDP figures can be compared to see whether an economy has grown because they have been adjusted to take price changes into account. For exampl ...
Economic Growth
... Yp = L* x (Y/L*) = (Hours of work) x (Labor productivity) What drives labor productivity growth? ...
... Yp = L* x (Y/L*) = (Hours of work) x (Labor productivity) What drives labor productivity growth? ...
model-pursuit-of
... Whereas, our current primary indicator of national success, the Gross Domestic Product (GDP), measures only economic activity and not the happiness and wellbeing of our citizens, and Whereas, even GDP’s creator, Simon Kuznets, proclaimed that ‘the welfare of a nation can scarcely be inferred by a me ...
... Whereas, our current primary indicator of national success, the Gross Domestic Product (GDP), measures only economic activity and not the happiness and wellbeing of our citizens, and Whereas, even GDP’s creator, Simon Kuznets, proclaimed that ‘the welfare of a nation can scarcely be inferred by a me ...
Growth rate of potential GDP
... interpretation corresponds to the steady-state rate of economic growth in neoclassical models. This value usually changes over relatively long periods of time, and only as a result of significant lasting changes in the fundamental conditions of the economy. In the medium term, the growth rate of pot ...
... interpretation corresponds to the steady-state rate of economic growth in neoclassical models. This value usually changes over relatively long periods of time, and only as a result of significant lasting changes in the fundamental conditions of the economy. In the medium term, the growth rate of pot ...
GDP Deflator versus CPI Index
... • CPI index reflects prices only a market basket of some goods/services bought by consumers – Narrow, consumer index, but includes imports ...
... • CPI index reflects prices only a market basket of some goods/services bought by consumers – Narrow, consumer index, but includes imports ...
MEASUREMENT OF NATIONAL INCOME
... • the changes over the years would also include the effect of the changes in prices • not a proper measure of real change in production ...
... • the changes over the years would also include the effect of the changes in prices • not a proper measure of real change in production ...
Chapter 2
... Gross Domestic Product (GDP) – The market value of final goods and services newly produced in a nation within a specified period of time. Gross National Product (GNP) = GDP + Net Factor Payment from Abroad (NFP) NFP = Income paid to domestic factors of production by the rest of the world – Income pa ...
... Gross Domestic Product (GDP) – The market value of final goods and services newly produced in a nation within a specified period of time. Gross National Product (GNP) = GDP + Net Factor Payment from Abroad (NFP) NFP = Income paid to domestic factors of production by the rest of the world – Income pa ...
More #PlowHorse in Q3
... 12% business investment share of GDP equals 0.3). Home Building: The housing rebound continued in Q3, growing at about a 6.5% annual rate. This translates into 0.3 points for the real GDP growth rate (6.5 times the home building share of GDP, which is 3%, equals 0.2). Government: Military spending p ...
... 12% business investment share of GDP equals 0.3). Home Building: The housing rebound continued in Q3, growing at about a 6.5% annual rate. This translates into 0.3 points for the real GDP growth rate (6.5 times the home building share of GDP, which is 3%, equals 0.2). Government: Military spending p ...
ECON-3.21-22.12 GDP
... Do you count production from foreign firms in America and/or American firms producing in other countries? Do you count every item produced or use a statistically significant sample? Pick a list of things and estimate based off that Would not result in accidental results but truly representative ...
... Do you count production from foreign firms in America and/or American firms producing in other countries? Do you count every item produced or use a statistically significant sample? Pick a list of things and estimate based off that Would not result in accidental results but truly representative ...
Section 1 Macroeconomics 2.1a The circular flow
... B. GDP does not take into account informal or black market activities. Consequently, the babysitting that you provided to your neighbor last weekend is not counted in the GDP. Nor are illegal activities such as selling stolen goods counted. C. Do it yourself activities are not counted in the GDP. T ...
... B. GDP does not take into account informal or black market activities. Consequently, the babysitting that you provided to your neighbor last weekend is not counted in the GDP. Nor are illegal activities such as selling stolen goods counted. C. Do it yourself activities are not counted in the GDP. T ...
Ch 7--That Imperfect GDP Statistic
... growth and economic development. It was assumed that if a country experienced economic growth, improvements in the living standards of the general population would inevitably ...
... growth and economic development. It was assumed that if a country experienced economic growth, improvements in the living standards of the general population would inevitably ...
Chapter5
... Ex 1) In the United states of LCG workers earn $6 million, spend $3 million on food, purchase $1 million in stocks and bonds ,$2 million is spent on building new houses, and $1million on imported goods. Firms earn $2 million in profit,$ 1 million in interest income, $500k in rent. Depreciation on ca ...
... Ex 1) In the United states of LCG workers earn $6 million, spend $3 million on food, purchase $1 million in stocks and bonds ,$2 million is spent on building new houses, and $1million on imported goods. Firms earn $2 million in profit,$ 1 million in interest income, $500k in rent. Depreciation on ca ...
Economy (available only in English)
... not included in the valuation of output. It is calculated without per capita (in PPP US$) deducting for depreciation of fabricated capital assets or for depletion and degradation of natural resources. Value added is the net output of an industry after adding up all outputs and subtracting intermedia ...
... not included in the valuation of output. It is calculated without per capita (in PPP US$) deducting for depreciation of fabricated capital assets or for depletion and degradation of natural resources. Value added is the net output of an industry after adding up all outputs and subtracting intermedia ...
Spanish National Accounts. Base 2008. series 2008-2011
... which will be disseminated tomorrow, Tuesday, 28 August, and referring to the second quarter of 2012. As a result of the update, the growth of Gross Domestic Product (GDP) in real terms for the year 2011 was revised with a drop of three tenths (from 0.7% to 0.4%), and for the year 2010, it was corre ...
... which will be disseminated tomorrow, Tuesday, 28 August, and referring to the second quarter of 2012. As a result of the update, the growth of Gross Domestic Product (GDP) in real terms for the year 2011 was revised with a drop of three tenths (from 0.7% to 0.4%), and for the year 2010, it was corre ...
IBEcon3
... of a society. Key differences between the two: Increases in economic growth do not necessarily translate into increases in economic development. Although economic progress is necessary for a better standard of living, a better standard of living does not always result from an increase in GDP. For ...
... of a society. Key differences between the two: Increases in economic growth do not necessarily translate into increases in economic development. Although economic progress is necessary for a better standard of living, a better standard of living does not always result from an increase in GDP. For ...
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.