Economic

Nominal GDP (GDP at current market price)
Real GDP (GDP at constant market price)

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National Income Accounting

GDP

- resident producing units

- total value of final output



GDP at market price = C + I + G + X – M



GDP at factor cost = GDP at market price – IBT + Subsidies



GNP

- residents

- total income earned



GNP = GDP + factor income from abroad – factor income paid abroad



Excluded items

- intermediate goods

- second-hand goods

- unreported market transactions

- imports

- shares and bonds

- welfare payment

- not currently produced items

-

Nominal GDP (GDP at current market price)

Real GDP (GDP at constant market price)



Price Index at base year

Real GDP = Nominal GDP x -------------------------------

Price Index at current year



Real GDP

Real GDP per capita = --------------------

Population size



Demand side factors

- C

- I

- G

- X

- M

-

Supply side factors

- Capital

- Land

- Labour

- Entrepreneurship

- Technology

-

Real GDP is a better indicator than nominal GDP because the effect of price changes in the year is eliminated.



Limitations of GDP statistics

(1) Income distribution

If income distribution is uneven, the majority of the population enjoys a lower

living standard.

(2) Population size

Real GDP per capital of a country may be lower due to a larger population size.

(3) Composition of output

If a large proportion of the GDP consists of capital goods, GDP will overestimate the current living standard.

(4) Leisure and unreported market transactions

They will raise living standard, but not GDP. Thus, GDP will underestimate the current living standard.

constant market price 是以 {特定年度} 物價計算
(一定唔係用今年物價計算 )

current market price 是以 {現時} 的市價計算
(一定用今年)


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我用中文讀
所以唔知會唔會有錯
但我會考經濟有C