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Countries by 2008 GDP (nominal) per capita (IMF, October 2008 estimate)

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The most common approach to measuring and quantifying GDP is the expenditure method:

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Gross Domestic Product — Blogs, Pictures, and more on WordPress

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GROSS DOMESTIC PRODUCT - Economix Blog - NYTimes.com

For the entire European Union, gross domestic product is expected to be 4 ... The gross domestic product report released Wednesday was unquestionably ...economix.blogs.nytimes.com/tag/gross-domestic-product/

Macau Q1 2008 Gross Domestic Product Expands by 31.6% | Macau Daily ...

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Wikipedia About Gross Domestic Product

Countries by 2008 GDP (nominal) per capita (IMF, October 2008 estimate)

Gdp%20nominal%20and%20ppp%202005%20world%20map%20single%20colour.png

The most common approach to measuring and quantifying GDP is the expenditure method:

GDP = consumption + gross investment + government spending + (exports − imports), or,
GDP = C + I + G + (X − M).

"Gross" means that depreciation of capital stock is not subtracted out of GDP. If net investment (which is gross investment minus depreciation) is substituted for gross investment in the equation above, then the formula for net domestic product is obtained. Consumption and investment in this equation are expenditure on final goods and services. The exports-minus-imports part of the equation (often called net exports) adjusts this by subtracting the part of this expenditure not produced domestically (the imports), and adding back in domestic area (the exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

  • Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
  • If separated from endogenous private consumption, government consumption can be treated as exogenous,Fact: date=March 2008 so that different government spending levels can be considered within a meaningful macroeconomic framework.

Components of GDP

Each of the variables C (Consumption), I (Investment), G (Government spending) and X − M (Net Exports) (where GDP = C + I + G + (X − M) as above)

(Note: * GDP is sometimes also referred to as Y in reference to a GDP graph)

  • C (Consumption) is private consumption in the economy. This includes most personal expenditures of households such as food, rent, medical expenses and so on but does not include new housing.
  • I (Investment) is defined as investments by business or households in capital. Examples of investment by a business include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases of financial products. Buying financial products is classed as 'saving', as opposed to investment. The distinction is (in theory) clear: if money is converted into goods or services, it is investment; but, if you buy a bond or a share of stock, this transfer payment is excluded from the GDP sum. That is because the stocks and bonds affect the financial capital which in turn affects the production and sales which in turn affects the investments. So stocks and bonds indirectly affect the GDP. Although such purchases would be called investments in normal speech, from the total-economy point of view, this is simply swapping of deeds, and not part of real production or the GDP formula.
  • G (Government spending) is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits.
  • X (Exports) is gross exports. GDP captures the amount a country produces, including goods and services produced for other nations' consumption, therefore exports are added.
  • M (Imports) is gross imports. Imports are subtracted since imported goods will be included in the terms G, I, or C, and must be deducted to avoid counting foreign supply as domestic.

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(AFX UK Focus) 2009-05-11 11:50 UPDATE 1-French econ minister sees "bad" Q1 GDP -paper

Interactive InvestorPARIS, May 11 (Reuters) - French Economy Minister Christine Lagarde expects first-quarter gross domestic product data, due out on Friday, to be "undoubtedly bad", she said in a newspaper interview published on Monday. She reiterated that the government will revise its growth forecast for the year, which currently stands at -1.5 percent, before meetings with euro zone finance ministers in June. ...http://www.iii.co.uk/news/?type=afxnews&articleid=7313433&su...

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EUActivOn 23 January 2008, the European Commission proposed a new directive that mandates a 20% share of renewable energies in the EU's energy mix by 2020. Setting individual national targets (see EurActiv LinksDossier ), calculated on the basis of each country's per capita gross domestic product (GDP), initially irked some capitals, which questioned the Commission's number crunching.http://www.euractiv.com/en/energy/us-overtakes-germany-count...

(AFX UK Focus) 2009-05-11 11:09 Czechs aim for 2010 fiscal gap at 4.5-4.7 pct/GDP-FinMin

Interactive InvestorPRAGUE, May 11 (Reuters) - The Czech Republic aims to keep the 2010 public sector deficit at 4.5 to 4.7 percent of gross domestic product, Finance Minister Eduard Janota said on Monday. "Our ambition is to influence the budget structures in a way to achieve a fiscal gap next year somewhere around 4.5, 4.7 percent (of GDP)," he told a conference. "It is indeed an ambitious target, which in the ...http://www.iii.co.uk/news/?type=afxnews&articleid=7313281&su...

Government ‘Holding Back’ Development of Digital Britain

New Media KnowledgeThe digital industries are critical to the UK’s overall economic performance. Eight per cent of the country’s gross domestic product is generated by intellectual property and almost two million people are employed in the UK’s creative industries.http://www.nmk.co.uk/article/2009/4/21/government-%e2%80%98h...

South Africa: Tourism's Contribution to GDP in Focus

AllAfrica.comJohannesburg — TOURISM directly contributed 3% to gross domestic product (GDP) and employed more than 500000 people in 2005, the inaugural Tourism Satellite Account, launched at this year's Tourism Indaba in Durban, shows.http://allafrica.com/stories/200905110033.html

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U.S. economic growth seen resuming in 3rd quarter

Reuters UKThe consensus forecast of panellists surveyed in the Blue Chip Economic Indicators newsletter for May predicted economic growth, as measured by real gross domestic product, would shrink 2.8 percent in 2009 but grow 1.9 percent in 2010. The economic ... http://uk.reuters.com/article/businessNews/idUKTRE54A30M2009...

White House Sees 3.5% Growth by Year-End, Exceeding Forecasts

BloombergIn the economic assumptions of its 2010 budget request, President Barack Obama ’s economic team didn’t change its 2009 predictions for a 1.2 percent drop in gross domestic product this year, slower inflation, higher unemployment and lower market ... http://www.bloomberg.com/apps/news?pid=20601087&sid=afNxR8Ar...

Mexican minister: swine flu could cut GDP by 1 pct

BusinessWeekLast week Mexican Finance Minister Agustin Carstens told The Associated Press he expected the country's $825 billion (608 billion euro) gross domestic product to fall between 0.3 and 0.5 percent because of the swine flu outbreak. He said the outbreak ... http://www.businessweek.com/ap/financialnews/D98429MG2.htm

Treasurer Wayne Swan blames revenue collapse on spending by John ...

News.com.auEconomists had expected a budget deficit of between $50 billion and $70 billion for 2009/10 which, at 5.0 per cent of gross domestic product, would be greater than the shortfall of the last two recessions in 1980s and 1990s. In the Updated Economic ... http://www.news.com.au/story/0,27574,25459706-5012587,00.htm...

Latvian Economy Shrank 18%, EU’s Deepest Contraction (Update1)

BloombergThe contraction, the steepest since quarterly records began in the Baltic nation in 1995, gathered pace after gross domestic product shrank 10.3 percent in the fourth quarter, the central statistics office in Riga said today. The median estimate in a ... http://www.bloomberg.com/apps/news?pid=20601095&sid=aaJnlF1P...

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Gross Domestic Product Definition

Gross Domestic Product - definition of Gross Domestic Product - GDP. The total market value of all final goods and services produced in a country in a given year, equal to total ... http://www.investorwords.com/2240/gross_domestic_product.htm...

GDP - Definition and Summary of GDP Gross Domestic Product

Defines GDP, describes how it acts as the economic indicator of the US economy and how it affects the reader.http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm

Gross domestic product - Wikipedia

A region's gross domestic product, or GDP, is one of the ways for measuring the size of its economy. The GDP of a country is defined as the market value of all final goods and ... http://dv.wikipedia.org/wiki/Gross_domestic_product

Gross Domestic Product - GDP - United States

The GDP for the United States is a gauge of the overall output (goods &...http://www.fxwords.com/g/gross-domestic-product-gdp-united-s...

Gross domestic product - Simple English Wikipedia, the free ...

In economics, the gross domestic product (GDP) is how much a place produces in some amount of time. For nations, the GDP can be found by adding up its output inside the borders of ... http://en.wikipedia.org/wiki/simple:Gross_Domestic_Product

Wikipedia results for Gross Domestic Product

Gross domestic product - Wikipedia, the free encyclopedia

The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country 's economy.http://en.wikipedia.org/wiki/Gross_domestic_product

Gross domestic product - Simple English Wikipedia, the free ...

In economics, the gross domestic product (GDP) is how much a place produces in some amount of time. For nations, the GDP can be found by adding up its output inside the borders of ... http://en.wikipedia.org/wiki/simple:Gross_Domestic_Product

Gross domestic product per barrel - Wikipedia, the free encyclopedia

Energy efficiency as it relates to oil usage can be described by the gross domestic product per barrel (GDP per barrel) (GDP/barrel) of oil used.http://en.wikipedia.org/wiki/Gross_domestic_product_per_barr...

Gross regional domestic product - Wikipedia, the free encyclopedia

Gross Regional Domestic Product (GRDP) or Gross Domestic Product of Region (GDPR) is a subnational gross domestic product for measuring the size of that region 's economy.http://en.wikipedia.org/wiki/Gross_regional_domestic_product

Potential output - Wikipedia, the free encyclopedia

In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real Gross Domestic Product output that can be sustained over ... http://en.wikipedia.org/wiki/Natural_gross_domestic_product
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Answers for Gross Domestic Product

Carmen PWhich of the following argues in favor of using Gross Domestic Product as a measure of economic well-being?Carmen PD is the answer. The larger the GDP of a country is, the larger the overall economy and thus the more money is being spent on education and health care (both of which will contribute to GDP as well, ...RanaHow to calculate quarteryly changes in gross domestic product?RanaWhy calculate it at all? It's reported quarterly and is public information. http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm http://www.dailyfx.com/story/spe...lil mamaWhat are the advantages of using the Gross Domestic Product as a measure of productivity & economic health?lil mamaGDP gives you an idea on how big the economy is. It is the total value of the products /services produced by the economy. If the data is accurately collected from quarter to quarter, This data should ...DoWHATiDOWhat role does the consumer play in Gross Domestic Product?DoWHATiDOConsumers act as a stimulus to GNP, as the demand for products by the consumer causes more of the desired products to be produced. Of course, consumer demand is often manipulated by outside forces su...Daryl ZeroWhat is the current Gross Domestic Product?Daryl ZeroPer US Dept. of Commerce, Bureau of Economic Analysis: Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 5.9 percent, or $188.9...
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