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GDP=C+I+G+ (X-Z)

GDE=C+I+G (this includes the value of all imports)

GDP>GDE means that exports>imports

GDE>GDP means that imports>exports

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Why imports are deducted from the gde?

Imports are deducted from Gross Domestic Expenditure (GDE) because GDE measures the total spending on goods and services within a country. Including imports would inflate this measure, as it would account for spending on foreign-produced goods that do not contribute to the domestic economy. By subtracting imports, GDE more accurately reflects the domestic economic activity and consumption. This adjustment ensures that the measure focuses solely on the value of goods and services produced and consumed within the country.


How do you calculate nominal GDP at market price?

Nominal GDP is GDP evaluated at current market prices. Therefore , nominal GDP wil include of the changes in market prices that have occurred during the current year due to inflation or deflation. Nominal GDP= GDP deflator.real GDP/100 Real GDP is GDP evaluate at the market price of some base year. GDP deflator --- Using the statistics on real GDP and nominal GDP, one can calculate an implecit index of the price level for the year. This index is called GDP deflator. GDP deflator = nominal GDP/real GDP .100 The GDP deflator can be viewed as a conversion factor that transform real GDP into nominal GDP. Note that in the base year, real GDP is by definition equal to nominal GDP so that the GDP deflator in the base year equal to 100.


What is the top ten poorest countries in Southeast Asia GDP?

TOP ELEVEN COUNTRIES IN SOUTH EAST ASIA BY GDP(GROSS DOMESTIC PRODUCT ) East Timor (GDP 499 ) Laos (GDP 5,260 ) Cambodia (GDP 11,182 ) Myanmar (GDP 27,182 ) Vietnam (GDP 89,829 ) Philippine (GDP 168,580 ) Hong kong (GDP 215,559 ) Malaysia (GDP 222,219 ) Thailand (GDP 273,248) Taiwan (GDP 392,552 ) Indonesia (GDP 511,765)


How do you calculate deflation rate?

Real GDP is the GDP during your chosen base year, and nominal GDP is the GDP of the year on which you are focusing. The GDP deflator from 1990 to now (2013) is: GDP (2013)/ GDP (1990) * 100%


Explain real GDP vs potential GDP?

Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation

Related Questions

Can you post the formula for Gross National Expenditure?

National Expenditure = consumption (durables + non-durables + services) + investment (business fixed investment (i.e. plant, equipment, inventories)) + government (purchase of goods and services not transfer of money (i.e. tax, pension)) + net export = GDP _____________________________________________________________ This is only for the first step to find the GDE (same as GDP but the E is for Expenditure). To find the GNE you have to add the Net Factor Expenditure from abroad (NFEFA) to the GDE. The NFEFA is the difference between output of locally owned resources located abroad and the output of foreign owned resources in the country. Thus, we add the NFEFA to the GDE to get the GNE GNE = GDE + NFEFA


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