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Lecture 12 (GDP (GDP and economy (Higher the GDP higher the economy…
Lecture 12
GDP
How GDP come
Fiscal year
Calculate the worth of the year
If low works compere to other so it is bad
If high worth compaire to previous year so it is good
With comparison of worth make analysis easy
Basic concept
It is a measurement tool
GDP and economy
Higher the GDP higher the economy
Example
GDP of America is 21 trillion
Lower the GDP lower the economy
Example
Pakistan GDP as compaire to America is 313
GDP of different countries and their progress
Example
China increase their GDP
Difference between GDP and worth
It not calculate
Welfare
Direction
Importance of GDP
To calculate how much work we done
To find worth
Compare the wealth with other countries
Full foam of GDP
Gross Domestic Production
Gross means sum of all source of income
Domestic means Local
Production means Local product and service
Calculation Of GDP
Consider the final product cost avoid duplication
Example
Car consider final price only
Three method to calculate GDP
Production method
Sum of all product we produce
Income method
Sum of all the income
Consumption method
Sum of we consume
Self GDP
Sum of
How much income we earn
How much investment we done
How much saving to done
How much liability we have
Formula of GDP
Sum of
Consumption
Product and service
Investment
Sum of
Government
People
Foreign
Government Spending
In the form of budget
Net export
Concept of account payable and receivable
Gross National Production
Basic concept
Prepared By:
Azaz Ahmed (1839124)