Gdp And The Economic Performance Of A Country

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The real GDP is determined by using a price deflator, which can tell you how prices have changed from year to year. How the BEA does this is by multiplying the deflator by the nominal GDP. The real GDP is lower than the nominal GDP. When calculating the real GDP the BEA doesn’t include income from U.S. companies, and people from outside the country. They also take out inflation. Then the final product is counted, meaning that if a U.S. citizen makes a shirt and the outfit was made in the U.S. then the value of the outfit as a whole will be counted. When interpreting the GDP it can be used to show investors which companies are growing the fastest. It can help investors know where to invest so they do not lose money. So in conclusion, I hope that I was able to give you guys an idea of what the economy may look like based on recent history and expected future conditions. It’s important to remember that our economy must be thriving for the better if we all want our business to be successful. In my opinion I feel that if we concentrated more on getting our children an education then they would be more productive in the economy. So once again I hope that we all learned something today and good luck on all of your business endeavors.

GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers

A lot of us have heard of the term GDP, especially toward the end of official year, but probably don't pay much attention to it. But to economists, businessmen, firms as well as governments, GDP is one of the most important tool used to reflect how a country do not only in economic but also in social and political perspectives. But what is GDP? What are its components? Why is it so important? And if GDP is that important and necessary, why are there still controversies against it?

-The nation’s GDP is a good measure of its economic well being and progress because it represents the total value of all goods and services produced in an economy, and what a country produces and what it consumes are nearly identical.

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First of all, economic growth is one of the macroeconomic objectives that the government wants to achieve as a primary goal and it happens when there is a rise in the enlarged product of population and per capita consumption. According to Hoover (2011), economic growth is the total material output of good values and service values in the market, measured by Gross Domestic Product (GDP) in a specific period of time. The growth of GDP is measured by excluding intermediate consumptions (production and resale), purely financial transactions and second-hand sales, which prevents double counting. To obtain an accurate value of economic growth, GDP needs to include the total output of expenditures and incomes.

We will begin with real GDP. Real GDP, an acronym for Gross Domestic Product, is the total value of final goods and services during a particular period or year adjusted for price changes. The GDP is an indicator of a country’s economic health. Final goods and services definition is a goods consumed rather than used for further processing. The Real GDP is increased or decreased based Inflation or deflation.

Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year (Investopedia.com, 2004). Inflation is the fluctuation of the costs for goods/services and this has a negative impact of increasing unemployment; individuals who are searching for work and are unable to find employment (“Introduction to economics,” 2012).

The US economy is made up of approximately 2/3 (68.7% to be exact) by consumer spending. Therefore, any significant change in GDP usually has a substantial effect on the stock market. When an economy is healthy and expanding, it is anticipated that businesses will report better earnings and growth. This will create a positive effect for the US stock markets in a bullish manner. At the same time, lower GDP measurements can have the opposite effect on stock prices as businesses begin to suffer. This lower GDP will have a negative effect on the US stock market in a bearish manner.

GDP is short for Gross Domestic Product and the dictionary defines it as “Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary

Measures of economic well-being such as GDP are subject to some limitations hence it is appropriate to use other alternative measures of economic growth. The limitations of GDP in measuring the economic well-being of a country include failure to capture the underground economy and failure to capture changes inequality. Others include the development of new products and failure to take in account human or leisure costs (Maddison 48).

In class, we have looked at what exactly the GDP is and the different ways of calculating it. Consumption by households, investment by businesses, government purchases, and expenditures by foreigners yield the GDP and is one of two ways to calculate the number discussed in class. Although the other way, the income approach, is more extensive both methods should in theory provide you with the same number.

Macroeconomics is the field of economics that studies the behavior of the economy as a whole not certain parts. Gross National Product (GDP) the economy’s total output; how it is affected by changes in unemployment, national income, rate of growth, and price levels. Macroeconomics encompasses an increase or a decrease in net exports would affect a nation 's capital account. Government’s role in macroeconomics is to keep the economy in equilibrium; taxes and government spending augment the balance to achieve equilibrium in the economy

Measuring GDP will give the county a good idea of its economic performance. This will help the government assess the current economic activity and standard of living. Therefore a rise in GDP will suggest better living standards, increased economic activity that would generate more jobs leading to individuals having more disposable income to spend on things. Increased spending in the economy would give business more confidence to increase their investments, which benefits future growth. Rising GDP would mean better public services are offered like improvements in the field of education, better healthcare and national security. On the other hand if GDP increases rapidly then it could also have a negative effect on the economy. Increasing GDP would lead to higher inflation as people are purchasing more products then there is an incentive to increase prices. This would further have pressure on interest rates to rise, leading to a decrease in competitiveness both in the domestic and international markets. As nominal prices rise, real wages have to rise in accordance for people to afford products and this leads to rise in unemployment. Also in places like China rise in GDP has been associated with a rise in pollution levels from factories which can have a