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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 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 • “ GawaDitosaPilipinas”
GNP • Gross National Product • Final value of all goods and services produced by the Filipinos for one year • “Gawang Pilipino”
NFY • Net Factor Income from Abroad = income earned by Filipinos abroad _ income earned by foreigners in the Philippines
GDP + NFY = GNP
Q: • What does it mean when GDP is greater than GNP?
Q: • Which is more favorable, a higher GDP? a higher GNP?
Real GDP / GNP vs. • Nominal GDP / GNP
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
Q: Why do we need to get the real GDP/GNP?
Per Capita GNP GNP _____________________ Population
Per Capita GNP • Share of each individual in the total output
Q: Is per capita GNP a significant indicator of growth? Why? Why not?
Other Indicators of Growth: • Unemployment Rate • Inflation Rate • Exchange Rate • Stock Market Prices • Human Development Index
Remember Me… • Which among the indicators of economic growth would you consider as the most important? Why?
We make a LIVING by what we get but we make LIFE by what we give. Sir Winston Churchill