Monday

 

Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 8 The Data of Macroeconomics
Chapter 23 of 36 Measuring A Nation’s Income
Section 7 of 15
…
GDP definition breakdown:
·1· GDP is the market value
·2· of all
·3· final
·4· goods and services
·5· produced
·6· within a country
·7· in a given period of time
…
·6· Within a country
GDP measures the value of production within a country.
When a Canadian citizen works temporarily in the United States, his production is part of U.S. GDP not Canada’s.
When an American citizen owns a factory in Haiti, the production at the factory is not part of U.S. GDP but rather of Haiti’s.
…
·7· In a given period of time
GDP measures the value of production within a specific time interval.
The interval is usually a year or quarter year (3 months).
When government reports quarterly GDP it is stated in terms of an annual rate.
This means the quarterly GDP figure is the amount of income and expenditure during the quarter multiplied by 4.
This convention is used by government so quarterly and annual figures on GDP can be easily compared.
For quarterly GDP reports government presents the data after they have been modified by a seasonal adjustment statistical procedure.
Unadjusted data show the economy produces and consumes more goods and services during certain times of year, such as in December because of holiday shopping.
… …
unadjusted data
michousei de-ta