Economics Stack Exchange
Economics Stack Exchange

Questions tagged [gdp]

Gross Domestic Product (GDP) is a flow measure of the value of finished goods and services produced within a country's borders in a specific time period. GDP is typically calculated on an annual basis.

Gross Domestic Product - The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.

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What is the purpose of measuring GNP?

I know that the GDP (the value of all final goods and services produced within a country during a given period of time) is useful for determining the productivity of a nation, the size of the nation's economy, and the standard of living. The GNP…
Mathematician
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On the relationship between income distribution and GDP

I was thinking about the following simple example when I wondered what the theoretical effects wealth equality or inequality may have on GDP: Suppose there is a society with three individuals who have enough money to cater for all their needs, and…
Kenshin
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Why doesn't anyone talk about GNW (Gross National Wealth)?

I just noticed a very interesting fact. GDP of the United States: $18.5B GDP of China: $11.4B If we look at national wealth... GNW of the United States: $84.8B GNW of China: $24.1B The margin of the GNW is 8.5 times higher of that of the GDP! Why…
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How does buying/selling houses affect the GDP?

Suppose I buy a house and sell it off in the same year for the same price, would the GDP for that year increase by twice the value of the house, or only once, or not at all?
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Why is depreciation added to the GDP with the income approach?

In my economics textbook, it states that when calculating GDP using the income approach, depreciation should be added. Specifically, GDP = Employee Compensation + Taxes less subsidies on businesses + Net operating surplus on businesses +…
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Do unsold goods still make it into the GDP?

Assuming Car Motors in Tiny Country has 1m USD and it spends it on workers and suppliers to produce 1m USD worth of cars (cost) for export at 2m USD (1m USD profit). A tsunami hits and drags all the cars under the ocean rendering them…
Jun Dalisay
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World bank data - GDP per capita current US\$ vs constant 2005 US\$

I'm looking at two charts from world bank on GDP per capita for Croatia and Russia - and this is what I get: Now, from what I gathered, the first chart should represent nominal gdp and the second one real gdp (in 2005 US$). Shouldn't the charts…
mrzli
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How does real GDP take into account technological advancement?

I'm asking this question, since it was not explained in my textbook and since I couldn't find the answer in Internet. For example, 1 TB HDD costs 50 dollars now, and 100 GB HDD costed 50 dollars in year X. They are the same products but have…
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How popular are alternative standard of living measures amongst economists?

GDP as a measure of the well being of an economy has been criticised as not being an accurate measure of the quality of an economy, as it excludes non-commericial interactions (such as housework or volunteer work) and includes negative events (such…
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Is there a relationship between the elevation/altitude of a city and its GDP?

A year or two ago, I recall watching a YouTube video that looked at the GDP of various cities and argued that there was a weak positive correlation between their elevation and their GDP. I can't find the video again and I haven't been able to find…
WhiskeyHammer
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Basic question on calculating real GDP

My book says the way we calculate real GDP in a given year is by adding the quantities of all goods and services produced in that year multiplied by their prices in some base year. There are actually two things I can't quite get: How do we account…
Sasaki
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How can I best estimate a company's contribution to GDP?

Would revenues be a good proxy variable? If not, what are the other proxy variables that I can use?
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Why use the income approach to approximate GDP if it relies on the value produced by the expenditures approach?

To preface, I'm taking a macroeconomics class and we're learning about measuring GDP. The textbook says that there are two main ways to measure GDP: the expenditures method and the income method. The expenditures method can be represented like…
DavisDude
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How to measure GDP in practice?

You can find many explanations of theoretically how GDP is measured. But how is it done in practice? Is it estimated by extrapolating from small samples of activity or can the overall value be measured directly somehow.
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An easy GDP growth question

A woman pays her gardener £60 per year and later married him. The gardener continues to work in the garden but unpaid. The woman earns £1000 before and after the marriage. Statement: the marriage decreases GDP by £60. My question is why the…
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