Market priced vs Factor priced GDP.

Discussion in 'Economy' started by Norman, May 17, 2011.

  1. Norman
    Online

    Norman Gold Member

    Joined:
    Sep 24, 2010
    Messages:
    6,466
    Thanks Received:
    975
    Trophy Points:
    280
    Ratings:
    +5,932
    Hey again.

    I swear, this is the last stupid question I will ask here.

    But which nominal GDP measure is the "real measure" without double counting?

    By this I mean, which measures how much money was spent?
     
  2. Norman
    Online

    Norman Gold Member

    Joined:
    Sep 24, 2010
    Messages:
    6,466
    Thanks Received:
    975
    Trophy Points:
    280
    Ratings:
    +5,932
    Bom!
     
  3. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    863
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Norman, the GDP is useful as a comparative figure.
    It doesn’t matter if products are wholesale or retail priced as long as all of the calculations are conducted in a similarly CONSISTENT manner. We want to compare oranges with oranges. Is that the question that you have in mind?

    Purchasing powers of currencies change over the years. If we’re making annual comparisons, the amounts should be adjusted to reflect the currencies’ purchasing power of the GDP’s year. If we’re comparing it to an average or a median amount, (e.g. median wage for example), it’s often helpful to use the GDP per capita.

    [The GDP per capita related to the median wage indicates the nation’s production per capita and to what extent that production has been distributed throughout the nation’s population]. I think these are certainly among if not the most significant economic indicators.]

    Respectfully, Supposn
     

Share This Page