GDP Flashcards
how do you measure GDP using the PRODUCTION APPROACH
Business Production + Household Production + Government Production +
(Taxes less Subsidies)
how do you measure GDP using the SPENDING APPROACH
Personal Consumption + Private Investment + Government Spending + Net Exports
how do you measure GDP using the INCOME APPROACH
National Income - Net Income Payments from Foreign Sector + Depreciation
What is the GDP Deflator or Implicit Price Deflator
Nominal GDP / Real Deflator x 100
How do you calculate GDP GROWTH RATES
GDP2 - GDP1 / GDP1 x 100
What methods are used to calculate REAL GDP
Constant Prices Method before 1990s
Chain Linked Prices Method after 1990s
How do you calculate INFLATION
Through Price Indexes like CPI
CPI2 - CPI1 / CPI1 x 100
how do you calculate SAVING
SAVING = Investment + Net Export
how do you calculate NET DOMESTIC PRODUCT
GDP - Depreciation
How do you calculate Net Saving
Gross Saving - Depreciation
what are LIMITATIONS of GDP
Does financial intermediation add value?
How should we account for rise of intangible economy?
