Data Exercise #1:
Understanding Gross Domestic Product
ECON 201: Principles of Macroeconomics
Uliana Gretchenko
University of Maryland University College
Abstract
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. It is important to know GPD to make conclusions about an economic growth and well-being of population of each particular country. This paper examines two methods of calculating GDP: Expenditures Approach and Income Approach. It also provides a GDP per capita as well as Index of Economic Freedom analysis.
2016 2017
Nominal GDP Q4 Q1 Q2 Q3
Gross domestic product 18,905.5 19,057.7 19,250.0 19,495.5
Gross private domestic investment 3,126.2 3,128.7 3,178.1
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It measures the GDP as follows: Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income. Total national income totals the sum of all wages + rents + interest and profits.
Gross Domestic Product (GDP) and Gross National Product (GNP) both try to estimate the market value of all goods and services produced for final sale in an economy (Investopedia.com). The difference between GDP and GNP is that that latter is a narrower definition of basically the same thing. If GDP is the sum value of products and services produced within a country, GNP is the sum value of products and services produced by its citizens both inside and outside the country. At the same time GDP takes into account production of non-citizens within the country, whereas GNP does not (Taylor & Greenlaw, 2014).
The formula to calculate GNP:
GNP = GDP + net factor income from abroad,
The measure of growth is flawed, how countries see their growth is based on the consumption of their people. Many countries use the GDP (Gross Domestic Product) as an indicator for growth, as defined in It’s All Connected, “(GDP) is a calculation of the total monetary value of goods and services produced annually in a country” (Wheeler 11). The...
Gross domestic product (GDP) is one of the best ways to measure how a country’s economy is doing. A main component in figuring the GDP is personal consumption expenditures. Personal consumption expenditures accounts for about two-thirds of domestic
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Global Inequalities and Interdependence Outline, and discuss the value of some of the indices which geographers have used in attempting to define 'a developing country' Measures of development are defined using a multitude of theories. Some focus on economic indicators, others on the quality of life. The economic indicator uses figures from GDP and GNP, which stand for Gross Domestic Product and Gross National Product respectively. GNP is the total value, or output of goods and services which become available during a period of time for consumption or saving within a country, plus income from foreign investors. This is then measured per head of the population, which gives GNP per Capita.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
Gross Domestic Product (GDP) is the market value of all final goods and services produced by factors of production within a country in a given period of time. It can be calculated using either the income, output, or expenditure method as illustrated on the circular flow of income diagram below.
Leonard Prescott, vice president and general manager of Weaver-Yamazaki Pharmaceutical of Japan, believed that John Higgins, his executive assistant, was losing effectiveness in representing the U.S. parent company because of an extraordinary identification with the Japanese culture.
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and services which a country produces which become available during a period of time (usually a year) for consumption or saving plus foreign. investment. The adage is a sham. GNP is usually expressed per capita. Explain why and possibly give some examples of different countries.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
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National income is a measure of the value of the output of the good and
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