Is the GDP how much money people make?
No, the GDP is the "gross domestic product". It's the value of the goods and services produced by the entire country. It's kind of related to how much money people make, but it's not the same thing.
GDP: gross domestic product; basically how much money taken by the country from within itself. Real GDP: * definition waiting. Per capita GDP: The GDP divided by the population. A good estimate of how much each person makes - a larger population with a fairly large GDP might appear to be better off, but a lower per capita GDP indicates that it is not as good as a smalller country with higher per capita GDP.
Rising GDP (Gross Domestic Product) creates an increase in the money supply. However the stock market needs an increase in GDP to make profits, and to much GDP causes higher inflation which is a big concern in China. The easy way to define inflation is, if inflation increases by 8% and your pay check only increases by 4% in that same year, your money is now worth 4% less than the previous year.
It is currently a rather substantial $3.8 billion of taxpayer money, or 0.34% of GDP. The Rudd government has committed to raising this to 0.5% of GDP or about $8 billion by 2015. The UN has established a goal of 0.7% of GDP for aid budgets of developed countries. There is an underlying assumption, consistently promoted by the UN, NGOs, and people like Jeffery Sachs that bigger is better.
because the GDP for the country is high, the GDP stands for Gross Domestic Product, this is just a fancy way of saying how much money the country produces. GDP percapita is another way of saying the GDP but for one person. The higher the GDP the wealthier the country so England obviously has a high GDP. But don't be fooled knowing the GDP does not tell you how developed the country is England is…
what happens if the GDP falls ? The country output will fall so fewer workers are needed and unemployment will occur . The average standard of living of people in the country - the number of goods and services they can afford to buy in one year - will decline .Therefore people will become poorer. Business owners will not expand their firms as people will have less money to spend on the products they make.
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding…
Economist compute real GDP because different regions have varying price levels. Price levels reflect the value of money itself. If GDP is not accounted for the value of money, then nominal GDP results and it represents real production * its value in the local currency. Since not all currency is equal in value, this will overvalue some GDPs and undervalue others. Real GDP removes money from the equation and allows for direct comparison.
A decrease in crime rate will decrease GDP. This is because areas of high crime require a higher police presence, available medical help, and people living in those areas will spend money to stay safe. People spend money on locks and security systems and many other items that they feel will keep them safe.
Since GDP is the total $ amount of financial transactions (buying and selling)... if you increase the number of transactions and/or the $ amount per transaction, GDP would increase. if the # of transactions in one year was 1,000,000,000 and the average $ amount per transaction was $1,000, GDP would be $1,000,000,000,000 or $1T. If the next year the # of transactions was 1,100,000,000 and the average $ amount per transaction was $1,000, GDP would…
Yes and no. Simply, no. Charity is not a component of GDP. Practically though, yes it is counted because charities have to purchase things or give money to people who in turn purchase things. This becomes the biggest portion of GDP: consumption. Say you donate $1,000 to Habitat for Humanity. This $1,000 is NOT calculated in GDP. But Habitat will then turn around and purchase lumber, nails, dry wall, insulation, etc etc etc with that…
GDP - per capita: $7,800 (2011 est.)note: data are in 2011 US dollars GDP - composition by sector: agriculture: 20.2% [see also: GDP - composition by sector - agriculture country ranks ] industry: 19.5% [see also: GDP - composition by sector - industry country ranks ] services: 60.3% (2011 est.) Data taken by CIA World Factbook