Measuring a Nation’s Income
- 3. Our Group member name: Name ID M21431111141 M21431111116 M21431111143 M21431111151 F21431111142
- 4. Our Presentation Topic Name Is: “Measuring a Nation’s Income”
- 5. Measuring a Nation’s income mainly focuses on gross domestic product or GDP as a measure of economy wide well-being. What is GDP? GDP means gross domestic product ,GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time. GDP is the total market value of all final goods and services produced within a country in a given period of time.
- 7. What is Nominal GDP? The nominal GDP is the value of all the final goods and services that an economy produced during a given year. It is calculated by using the prices that are current in the year in which the output is produced
- 8. What is real GDP? The real GDP is the total value of all of the final goods and services that an economy produces during a given year, accounting for inflation . It is calculated using the prices of a selected base year. To calculate Real GDP, you must determine how much GDP has been changed by inflation since the base year, and divide out the inflation each year.
- 9. what is GDP deflator? The GDP deflator is a price index that measures inflation or deflation in an economy by calculating a ratio of nominal GDP to real GDP times 100.
- 10. What is the components of GDP? GDP as examined using the Expenditure Approach is reported as the sum of four components. The formula for determining GDP is: C + I + G + NX= GDP C = Personal Consumption Expenditures. I = Gross Private Fixed Investment. G = Government Expenditures and Investment. NX = Net Exports .
- 11. How can we Measure GDP? GDP is the market value … Output is Valued at market prices. Of All Final… It records only the value of final goods, not intermediate goods. Goods and Services… It includes Both Tangible goods and intangible Services. Produced…. It includes goods and services currently produced, not transactions involving goods produced in the past.
- 12. Within a Country…. It measure the value of production within the geographical confines of a country. In a Given period of time…. It measure the value of production that takes place within a specific interval of time, usually a year or a quarter(Three months)