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MEASURING ECONOMIC GROWTH

MEASURING ECONOMIC GROWTH. GDP / GNP. CONCEPTS:. Economic Growth - an increase in the total output of the economy -GDP and GNP. GDP. Gross Domestic Product Final value of all goods and services produced in the country for one year “ Gawa Dito sa Pilipinas ”. GNP.

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MEASURING ECONOMIC GROWTH

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  1. MEASURING ECONOMIC GROWTH GDP / GNP

  2. CONCEPTS: • Economic Growth - an increase in the total output of the economy -GDP and GNP

  3. GDP • Gross Domestic Product • Final value of all goods and services produced in the country for one year • “ GawaDitosaPilipinas”

  4. GNP • Gross National Product • Final value of all goods and services produced by the Filipinos for one year • “Gawang Pilipino”

  5. NFY • Net Factor Income from Abroad = income earned by Filipinos abroad _ income earned by foreigners in the Philippines

  6. GDP + NFY = GNP

  7. Q: • What does it mean when GDP is greater than GNP?

  8. Q: • Which is more favorable, a higher GDP? a higher GNP?

  9. Real GDP / GNP vs. • Nominal GDP / GNP

  10. Based on a constant price Price (2000) X Quantity (2011) Based on a current price Price (2011) X Quantity (2011) Real GDP/GNP vs. Nominal

  11. Q: Why do we need to get the real GDP/GNP?

  12. Per Capita GNP GNP _____________________ Population

  13. Per Capita GNP • Share of each individual in the total output

  14. Q: Is per capita GNP a significant indicator of growth? Why? Why not?

  15. Other Indicators of Growth: • Unemployment Rate • Inflation Rate • Exchange Rate • Stock Market Prices • Human Development Index

  16. Remember Me… • Which among the indicators of economic growth would you consider as the most important? Why?

  17. We make a LIVING by what we get but we make LIFE by what we give. Sir Winston Churchill

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