Factors that affect GDP are:
Consumption
Investment
Government
Net exports (imports-exports)
Y being GDP, we have:
Y=C+I+G+NX
Any change in one of these factors will increase or decrease the GDP.
Interest rates, consumer confidence, real wages, and the banking sector affect the GDP of a country. Levels of infrastructure, human capital, and development of technology affect the long term growth. Short term growth is affected by commodity prices, political instability, and the weather.
Savings and Investment, Private and Government-Financed Investments, Macroeconomic Stability, Trade Liberalisation, Capital Mobility and Exchange Rate Policy.
On a basic level it is just demand and supply known correctly as 'Demand side factors' and 'Supply side factors'.
Many factors that affect the GDP, gross national product. The most important factor is the rate of inflation. The second most important factor is the unemployment rate.
The factors affecting gross domestic products are; Expenditure approach, Income approach and product or output approach.
Consumption, Investment, Government Spending and net exports minus imports
Suppose that natural rate of unemployment is 5%, and the actual rate of unemployment is 8.3% per current year. Determine the potential GDP, if: • Okun's coefficient -- 3, • actual GDP -- 1480 units.
The level of real GDP in the long run is called Potential GDP.
Potential GDP is basically the sum of growth in productivity, growth in labor force, and growth in number of hours worked. In a mature economy like the US, change in number of hours worked is insignificant and often ignored. -Potential GDP is the level of real GDP that the economy would produce if it were at full employment. When real GDP falls short of potential GDP the economy is not at full employment. When the economy is at full employment real GDP equals potential GDP. Real GDP can exceed potential GDP only temporarily as it approaches and then recedes from a business cycle peak.
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
Potential GDP is the highest level of Real GDP that could persist for a substantial period with raising the rate of inflation. In other words, it is the real value of the services and goods that can be produced when a country's factors of production are fully employed. Real GDP is the Gross Domestic Product in constant prices. It is a nation's total output of goods and services, adjusted for price changes.
Suppose that natural rate of unemployment is 5%, and the actual rate of unemployment is 8.3% per current year. Determine the potential GDP, if: • Okun's coefficient -- 3, • actual GDP -- 1480 units.
The level of real GDP in the long run is called Potential GDP.
Potential GDP is basically the sum of growth in productivity, growth in labor force, and growth in number of hours worked. In a mature economy like the US, change in number of hours worked is insignificant and often ignored. -Potential GDP is the level of real GDP that the economy would produce if it were at full employment. When real GDP falls short of potential GDP the economy is not at full employment. When the economy is at full employment real GDP equals potential GDP. Real GDP can exceed potential GDP only temporarily as it approaches and then recedes from a business cycle peak.
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
Mass and Charge
Weight and height
Mass and distance
Potential GDP is the highest level of Real GDP that could persist for a substantial period with raising the rate of inflation. In other words, it is the real value of the services and goods that can be produced when a country's factors of production are fully employed. Real GDP is the Gross Domestic Product in constant prices. It is a nation's total output of goods and services, adjusted for price changes.
There are two types of GDP.such as 1)Potential GDP,2) Nominal GDP
How to calculate potential gdp and natyral rate of unemployment?
GDP Gap measures the percent difference in Real and Potential GDP
Its weight and the height Thank you....