Stats

Sessions 4-6 PGP - I, Oct. Dec 2010 amarendu@gim.ac.in Review: Session 2 & 3 ? Measuring frugal Activity ? What are internal Accounts? ? National Income Accounting: divergent Measurement Approaches (Output, Income, Expenditure) ? Additional concepts: gross domestic product vs. GNP; Nominal vs. significant gross domestic product; Dangers of Double Counting; The GDP Deflator ? Factors Influencing the Size of National Income Real GDP and the Price Level ? The new method of figure strong GDP, which is called the chain-weighted output index method, uses the prices of two adjacent social classs to calculate the real GDP offshoot stray. ? This calculation has tetrad abuses described on the next slide. Real GDP and the Price Level ? Step 1: Value last course?s production and this yr?s production at last course of instructions prices and accordingly calculate the growing rate of this number from last year to this year. ? Step 2: Value last year?s production and this year?s production at this years prices and then calculate the growth rate of this number from last year to this year. ? Step 3: Calculate the average of the two growth rates. This average growth rate is the growth rate of real GDP from last year to this year. ? Step 4: recall steps 1, 2, and 3 for each pair of adjacent long time to link real GDP back to the base year?s prices.

Real GDP and the Price Level step 1: ? 2002 production at 2002 prices (GDP in 2002) is $200. ? 2003 production at 2002 prices is $270. ? The 2003 growth rate in 2002 prices is 35 percent. keepsake 2002 Balls around the bend 2003 Balls Bats 160 22 $0.50 $22.50 100 20 $1.00 $5.00 step Price Step 2: Real GDP and the Price Level Item 2002 Balls Bats 2003 Balls Bats 160 22 $0.50 $22.50 100 20 $1.00 $5.00 Quantity Price ? 2002 production at 2003 prices is $500. ? 2003 production at 2003 prices (GDP in 2003) is $575. ? The 2003 growth rate in 2003 prices is 15 percent. Real GDP and the Price Level Step 3: ? The 2003 growth rate in 2002 prices is 35 percent. ? The 2003 growth rate in... If you want to bind a full essay, order it on our website: Ordercustompaper.com

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