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.
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The formula to calculate GNP:
GNP = GDP + net factor income from abroad,
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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.
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...
GDP measures the total value of all goods and services produced within that territory during a specified period. GDP is used to measure a country’s wealth. Basic’s of life, food, etc. shelter and clothing is not likely available to most people in poorer countries. The.
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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.
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P&G’s purpose is to provide branded products and services of superior quality and value that improve the lives of the world’s consumers. P&G values their employees through leadership, ownership, integrity, passion for winning, and trust. P&G entices and recruits best people in the world, builds their organization by promoting and rewarding from within, and believes that their employees will always be the most important asset. P&G has many principles such as (1) showing respect to all individuals, (2) valuing differences, (3) inspiring and enabling employees to achieve high expectations, standards, and challenging goals, (4) valuing personal mastery, (5) believing that all individuals can and want to contribute to their fullest potential, (6)
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National income is a measure of the value of the output of the good and