A. HEADLINE INDICATOR 1. Real GDP per capita growth rate Real GDP per capita is a measurement of the total economic output of a country divided by the number of people and adjusted for inflation. This economic indicator has three important concepts. First is GDP, or Gross Domestic Product.
Part 1 Terminology Macroeconomics use terminology that is rather distinct from other fields of study. To describe the massiveness of a nation’s economy a numerical measurement is essential. There are many ways to measure economic activity, but a single, common measure is important for purpose of comparison between two different countries or even the same country to itself at different times. Economists have generally agreed that the best measure is the Gross Domestic Product (GDP). This is the sum of cost of all the final products and services sold in any economy.
Nominal GDP is the measurement that leaves inflation in the estimate therefore | |it’s usually higher than real GDP . | |(Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw Hill/Irwin) | |Unemployment Rate: Unemployment rate is the percentage of people in the economy who are willing and able to work but who are not working. | |(Colander, D. C. (2010).
Running head: INTERNATIONAL PAPER International Paper ECO561 / Economics International Paper Introduction Identify and Justify Macroeconomic Measures for Pricing and Output The economy is measured based on annual total output of goods and services and is called the gross domestic product or GDP. (McConnell, 112) Additionally the GDP shows what each sector or industry pays for the goods and services it receives. Based on data provided in the Bureau of Economic Analysis’ Industry Economic Accounts, we know that the gross output for the motor vehicle industry is significantly higher than Big Drive Auto’s output. (www.bea.gov) There are several different factors that could impact why Big Drive is lower than the national average. These include potential differences such as the amount of local competition, the local economy, and possible higher unemployment rates all of which lead to less disposable personal income.
o Gross income and AGI • Gross income is every dollar you made for the year, the AGI is your gross income minus your adjustments such as your deductions such as your 401k contributions. o AGI and taxable income • Taxable income is what is left after someone adds up all income and subtracts their deductions. This is the amount subject to income taxes. AGI is always more than taxable income, it is calculated by taking the income and subtracting specific items and adding in other items like a gain on disposal of assets such as what usually happens when you sell a home. o Tax deduction and tax
Explain how changes in the price level in the UK are measured through the use of price indices such as the RPI and CPI. (15 marks) In the UK the change in price level is measured now through the CPI or the consumer price index, which is a weighted price index that measures the monthly change in the prices of a basket of around 600 goods and services. The weighting and the goods included in the basket are determined through the family expenditure survey each year, although the expenditure of high-income households and pensioners are excluded from the survey, which attempts to look at the expenditure of the ‘average family’. The weighting of different goods within the CPI reflects the spending patterns of the average family, for example food may be weighted higher then lawnmowers as food takes up more of a families budget and is seen as more important, because of this some goods have a larger impact on CPI then their actual change because of the weighting. When a good is deemed no longer a significant part of the spending of an average family it is removed from the survey and new ones are added, for example recently craft beer and headphones where added to the basket whilst sat navs and yoghurt drinks where removed from the basket.
Financial Statement Report ACC/290 06/03/2013 Lisa Henderson Financial statement is an expression used when referring to end of the month reports such as an income statement, balance sheet, cash flow statement, and Retained Earnings Statement. These statements are also known as the final accounts. The income statement is a financial statement that aids in estimating the gross and net profit of a business for a specific time period. Many companies put together income statements so they can evaluate proceeds with expenditures to verify their performance. If the income of the business is more than the expenses then the company has made money and vice versa.
Liabilities are accounts that are owed out to a creditor, vendor or a bank. Liabilities are presented on the Balance Sheet and normally have a credit (negative) balance. A debit to a liability account decreases it while a credit will increase it. Liabilities are broken down to current and long term. The current liabilities are what is owed and is expected to be paid off on one year.
Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution. (b.) Which is the most volatile as a percentage of GDP? (c.) Ignoring net exports, which component has grown the fastest as a percent of GDP since 1965? The gross domestic product (GDP) is a major indicator that we use to measure the health of our country's economy.
Measuring Economic Health Memo * In this writing, I will describe the use of gross domestic product to measure the business cycle, describe the roles of government bodies that determine national fiscal policies, explain the effects of fiscal policies on the economy’s production and employment. Finally I will talk about how do changes in government spending and taxes positively or negatively affect the economy’s production and employment. Gross domestic product, the official measure of total output of goods and services in the U.S. economy, represents the capstone and grand summary of the world's best system of economic statistics. The federal government organizes millions of pieces of monthly, quarterly, and annual data from government agencies, companies, and private individuals into hundreds of statistics, such as the consumer price index (CPI), the employment report, and summaries of corporate and individual tax returns. The U.S. Department of Commerce then marshals the source data into a complete set of statistics known as the National Income and Product Accounts.