Jason<\/p>\n
Good evening class,<\/p>\n
We briefly covered GDP in our first unit but this week broke it down even further. Gross Domestic Product is basically just a value (number) that measures how well an economy is performing. It measures the wealth of an economy but it does not measure a nation\u2019s welfare or how well of people of that economy are. To put it simply, higher GDP means more goods and services are being produced\/bought, which means more jobs, which means more income.\u00a0 GDP is calculated by adding several flow variables. To get GDP you add personal consumption (value of good\/services purchased by households), gross private domestic investment (value of all good\/services produced the will be used to produced other goods\/services), government purchases (total good\/services purchased from firms by the government as well as the total goods\/services produced by government agencies) and net exports (to total number of exports \u2013 imports purchased).<\/p>\n
\u00a0<\/p>\n
After going through this week\u2019s readings, I think that the second part of this discussion post is something to take note of. Even our text book discusses the problems with GDP, whether it be how it is measured or intangible issues with what should or should not be included. One thing that really caught my attention is understanding how accurate and relevant the GDP that is released by the commerce department really is.\u00a0 Calculating GDP takes time, the first number\/figure is just an estimate that changes several times after they are revised.\u00a0 Sometimes it takes years of revisions from a particular calendar year or quarters estimate GDP to reflect what was really going on in our economy during that time period. Some people do more for themselves instead of buying good\/services from others. If someone grows their own food and puts time towards doing so, it is not counted in GDP. In lower income countries the good\/services produced may not be available on the open market for sale but to be used internally to take care of one another. Those \u201cgoods and services\u201d aren\u2019t counted in GDP either.\u00a0 Additionally, just because a nation has high GDP that doesn\u2019t mean people are happy. That may suggest that people do not know how to take time off from work to relax or just cannot afford to do so.<\/p>\n
When you throw in the concept of per capita real GDP, those overall high numbers for the countries at the top of the chart can start looking much smaller when you take into account the population of a particular nation.<\/p>\n
I think I learned a lot this week about GDP. Hats off to the economists that are computing our GDP. Our material simplifies how it all works but it has to be very complex.<\/p>\n","protected":false},"excerpt":{"rendered":"
Jason Good evening class, We briefly covered GDP in our first unit but this week broke it down even further. Gross Domestic Product is basically just a value (number) that measures how well an economy is performing. It measures the wealth of an economy but it does not measure a nation\u2019s welfare or how well […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78582","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78582"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78582\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}