Gdp Vs Real Gdp

GDP vs Real GDP October-29-08 7:39 PM

Self Test 2 1. (6000 / 1) x (100 / 140) = 4285.7143 , 285.7143/4000 = 0.0714 Which means a total increase of 7% 2. (5800 / 1) x (100 / 160) = 3625 , -575 / 4200 = 0.1369 which means a decrease of 13%. Self Test 3 1. -

a. When the person buys a good or service from other people and are reported then it counts. b. Legal bets are counted in the GDP. State lotteries are also counted. c. None 2. They should be included into GDP because illegal production is still a sale of a good or service and is still a form of production which is included in the definition of GDP. 3. Some physical benefits includes a higher quality of life in general, more production, nature of the workforce. Self Test 4

1. GDP / Population 2. 3.55x greater. 3. 5000000000000/250000000 = 20000 per capita GDP.

CASE STUDY 1. 2. 3. 4. 5.

GDP is everything bad in an economy. Less leisure time, downsizing of the middle-class, and the reduction of community and civic needs. Crime, pollution, commuting, family breakdown expenditures. Good marriages, friendly communities, clean water, leisure time, and wild places. -

GPI

GDP

Not real representation of economy Makes economy look like it's growing Looks bad for economy

Universal standard

Better economic policies

Shows prosperity

GNP a) b) c) d)

INCOME BASED EXPENDITURES -854B EXPENDITURE - 872B Minus or add the difference It is contracting since there is more expenditures then there is income. GNP =864B which is lower then GDP which means more dependencies of foreign investment

2.

Unit 2 Page 1