GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATOR

THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.

1. MACRO-ECONOMICS GROUP MEMBERS: KASHIF MURTAZA AWAIS KARIM BUX PRESENTED TO: MADAM MARIA SHABBIR SHAIKH

2. TOPICS: GDP GNP NDP NNP REAL GDP NOMINAL GDP GDP DEFLATOR

3. PRESENTED BY: AWAIS TOPIC : GDP

4. WHAT IS GDP: Total market value of the goods and services produced by a country's economy during a specified period of time.

5. Sales of goods that were produced outside our domestic borders. Sales of used goods. Illegal sales of goods and services (which we call the black market ). Transfer payments made by the government Intermediate goods that are used to produce other final goods. What's Not Included in the GDP:

6. FORMULA OF GDP: GDP=C+I+G+(X-M)

7. C=(consumption) is consisting of private expenditures (household final consumption expenditure) in the economy. I=(investment) includes business investment in equipment, but does not include exchanges of existing assets. COMPONENTS OF GDP FORMULA:

8. G=( government spending ) is the sum of government expenditures on final goods and services. X=(the amount a country produces, including goods and services produced for other nations’ consumption.

9. M=(Imports are subtracted imported goods will be included in the terms “G”, “I”, or “C”, and must be deducted to avoid counting foreign supply as domestic.

10. NDP equals the gross domestic product minus depreciation on a country's capital goods. WHAT IS NDP: capital that has been consumed over the year in the form of housing, vehicle, or machinery.

11. NDP FORMULA: NDP = Gross domestic product (GDP) - Depreciation WHAT IS DEPRECIATION: A reduction in the value of an asset over time.

12. WHY GDP IMPORTANT: If the country is not able to replace the capital stock lost through depreciation, then GDP will fall.

13. PRESENTED BY: MURTAZA TOPIC: GNP

14. WHAT IS GNP: Gross national product (GNP) is an estimate of total value of all the final products and services produced in a given period by the means of production owned by a country's residents .

15. Formulas of GNP: GNP = C + I + G + X + Z. GNP = Consumption + Investment + Government + X (net exports, or imports minus exports) + Z (net income earned by domestic residents from overseas investments - net income earned by foreign residents from domestic investments.) 

16. EXAMPLES OF GNP: GNP=Money value of every thing produced with in Pakistan + incoming money from out side (Pakistan) – out going money to abroad (foreigners) Atif aslam goes to India earn money send Pakistan ( will be added in our own GNP)…. Priyanka copra goes to America earn money send India ( will be add in own GNP)…..

17. the total value of a nation's annual output of goods and services minus the value of capital goods used up in the production of this output . NET NATIONAL PRODUCT:

18. NNP = Gross National Product - Depreciation NNP  is a measure of how much a country can consume in a given period. FORMULA OF NNP:

19. PRESENTED BY: KASHIF TOPIC: GDP DEFLATOR

20. Real GDP is a measurement of economic output that accounts for the effect of constant prices WHAT IS REAL GDP: FORMULA OF REAL GDP: REAL GDP= Q X P (CONSTANT PRICES)

21. Nominal GDP, or gross domestic product, measures the value of all finished goods and services produced by a country at their current market prices WHAT IS NOMINAL GDP: FORMULA OF NOMINAL GDP: NOMINAL GDP= Q X P (CURRENT PRICES)

22. The  GDP  price  deflator  is an economic measure of inflation and is derived by dividing nominal  GDP  by real  GDP , and then multiplying by 100. GDP DEFLATOR: FORMULA OF GDP DEFLATOR: GDP DEFLATOR= NOMINAL GDP/ REAL GDP X100