NATIONAL INCOME

NATIONAL INCOME
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K UNIT III Production and Cost of Production Dr. Dhananjay K Associate Professor Economics for Managers
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Module V Gross Domestic Product
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • GDP- The measure of economic growth • Economic growth- Increase in the ability of a nation to produce goods & Services • GDP – Market value of all final goods and services produced within a country in a given time period
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • “GDP is the market Value….” “You can’t add apples and oranges” -But that is just what govt statisticians must do. -Hence, the approach to GDP is to add up rupee value of every good and services – the number of rupee each product sold for. -Prices reflect the value of goods & services
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • “Of All…” • GDP tries to be comprehensive. • Includes all items sold in the market legally. • Excludes goods produced & sold illegally. • Excludes unpaid household service/labor. • Oxfam’s Time to Care 2020 report states that women and girls in India contribute 3.26 billion hours of unpaid care work every day, representing the equivalent of at least $271 billion in unpaid income in India a year. This burden of unpaid work negatively impacts women’s economic gains and traps them at the bottom of the economy. - Paul Samuelson- If you marry your maid, GDP decreases
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) “…Final…” -Only value added at each stage is calculated. -To avoid the problem of double counting.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Compute Value Added
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) “…Goods & Services…” • Both tangible goods & Intangible Services included.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • “Produced” • Includes goods and services currently produced not in the past.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • “Within a country” • Produced within a country • Asian Paints producing paints in China - is part of Chinese GDP • US MNC P &G’s products in India is part of Indian GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • “…In a given period of time…” • Measures the value of production that takes place within a specific interval of time. • Usually a quarter and year • “GDP is the Market value of all final goods and services produced within a country in a given time period”
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Consider a simple economy in which one good is produced and sold. • 1. Ramya finds a seed and plants it. Sometime later, an orange tree appears. • 2. Ramya pays Arun $5 in wages to pick and box the oranges. • 3. Next, Ramya sells the oranges to Pooja for $8. • 4. Pooja turns the oranges into orange juice and sells the orange juice to Carol for $10. • Carol drinks the juice. • Compute the value added.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Compute GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) Rank Counrty GDP(Million $) 1 United States 2,14,27,700 2 China 1,43,42,903 3 Japan 50,81,770 4 Germany 38,45,630 5 India 28,75,142 6 United Kingdom 28,27,113 7 France 27,15,518 8 Italy 20,01,244 9 Brazil 18,39,758 10 Canada 17,36,426 Top 10 countries nominal GDP(2019) Rank Counrty GDP(Million $) 1 China 2,34,60,170 2 USA 2,14,27,700 3 India 96,11,679 4 Japan 54,59,155 5 Germany 46,59,795 6 Russia 42,81,807 7 Indonesia 33,29,169 8 France 33,15,118 9 United Kingdom 32,55,484 10 Brazil 32,20,373 Top 10 countriesby PPPGDP(2019)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Concepts of GDP • GDP and Net Domestic Product (NDP) • NDP = GDP-Depreciation. Depreciation is the decrease in stock of capital that results from wear and tear. -Also known as capital consumption Allowance
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Net Domestic Product (GDP) • NDP = GDP - Depreciation
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Ms. Veena, a computer engineer by qualification, is a housewife. She has got a job offer by an IT company. However, to join the duty she has to appoint a maid. What will happen to GDP if she accepts the offer? • Over the years Indians have chosen to cook less at home and eat more at restaurants. How has this practice affected GDP.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Consider a simple economy in which one good is produced and sold. • 1. Ramya finds a seed and plants it. Sometime later, an orange tree appears. • 2. Ramya pays Arun $5 in wages to pick and box the oranges. • 3. Next, Ramya sells the oranges to Pooja for $8. • 4. Pooja turns the oranges into orange juice and sells the orange juice to Carol for $10. • Carol drinks the juice. • Compute the value added.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • Nominal GDP and Real GDP -Nominal GDP is GDP at current prices. • Nominal GDP is “the sum of all the current-year quantities times their current-year prices.” -Real GDP is GDP at base year’s price • -Real GDP is “the sum of all the current-year quantities times their base-year* prices.” • Base-year prices eliminate the effects of inflation. • The base year is the year with which the prices from other years are compared.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • Compute Real GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • 𝑮𝑫𝑷 𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓 = 𝑵𝒐𝒎𝒊𝒏𝒂𝒍 𝑮𝑫𝑷 𝑹𝒆𝒂𝒍 𝑮𝑫𝑷 ∗ 𝟏𝟎𝟎 • GDP Deflator measures the impact of inflation on GDP of an economy during a specific fiscal year • Suppose that nominal GDP in 2020 is $100000 and Real GDP is $100000 • 𝑮𝑫𝑷 𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓 = 𝟏𝟎𝟎𝟎𝟎𝟎 𝟏𝟎𝟎𝟎𝟎𝟎 ∗ 𝟏𝟎𝟎 = 𝟏𝟎𝟎
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • Suppose that nominal GDP in 2020 is $100000 and Real GDP is $80000 • 𝑮𝑫𝑷 𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓 = 𝟏𝟎𝟎𝟎𝟎𝟎 𝟖𝟎𝟎𝟎𝟎 ∗ 𝟏𝟎𝟎 = 𝟏𝟐𝟓 The aggregate level of prices increased by 25 percent from the base year to the current year
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • Suppose that nominal GDP in 2019 is $200000 and Real GDP is $150000 • Suppose that nominal GDP in 2020 is $300000 and Real GDP is $200000
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross National Income (GNI) • Gross domestic product (GDP), which takes into account all output produced within a country's borders regardless of who owns the means of production. • Gross National Income (GNI) is the total value of goods and services produced by the residents of a country, irrespective of their geographic location. • GNI is the total amount of money earned by a nation’s people and businesses. GNI= GDP- value of goods produced in India by rest of the world + value of goods produced by India in rest of the world.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross National Income (GNI) • Suppose that the GDP of India is $100000 • The value of the goods produced by the rest of the word in India is $10000 (Outflow of income from India) • The value of the goods produced by India in rest of the word is $15000 (Inflow of income to India) • Compute GNI • GNI= GDP + (Net income from abroad)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross National Income (GNI) • The value of products produced by the P& G in India is part US_____________ and part of ndia’s__________________ • The value of products produced by Asian Paints in US is part US_____________ and part of India’s____________
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross National Income (GNI) Item Credit Debit Net 1 8 9 10 A. CURRENT ACCOUNT I. MERCHANDISE 64,937 98,941 -34,004 II. INVISIBLES (a+b+c) 57,619 30,696 26,923 a) Services 37,885 19,802 18,083 b) Transfers 15,936 687 15,250 c) Income 3,798 10,207 -6,409 Total Current Account (I+II) 122,556 129,637 -7,081 B. CAPITAL ACCOUNT 1. Foreign Investment (a+b) 62,919 52,343 10,576 a) Foreign Direct Investment (i+ii) 17,050 6,265 10,785 b) Portfolio Investment 45,869 46,078 -209 2.Loans (a+b+c) 28,999 31,356 -2,358 a) External Assistance 1,513 1,175 338 b) Commercial Borrowings(MT&LT) 6,756 7,666 -910 c) Short Term To India 20,729 22,515 -1,786 3. Banking Capital (a+b) 17,348 16,033 1,315 a) Commercial Banks 17,347 16,033 1,314 b) Others 2 0 2 4. Rupee Debt Service 0 0 0 5. Other Capital 5,696 4,694 1,002 Total Capital Account (1 to 5) 114,962 104,426 10,536 C. Errors & Omissions 601 601 D. Overall Balance (A+B+C) 238,119 234,062 4,056 E. Monetary Movements (i+ii) 0 4,056 -4,056 i) I.M.F. 0 0 0 ii) Foreign Exchange Reserves 0 4,056 -4,056 ( Increase - / Decrease +) Oct-Dec 2015 P
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income If GDP is 75, calculate GNI
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income • Calculate National Income
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income • GNI and National Income • National income is the sum of all incomes earned by residents as a result of the economic activity. • Total income earned by Indian citizens & business, no matter where they reside or locate. • National income is that income which accrues to the economic agents of the country. • National income is the sum of the payments to resources (land, labor, capital, and entrepreneurship).
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income • National income = Compensation of employees + Proprietors’ income + Corporate profits + Rental income + Net interest. National Income = GNI- (depreciation + indirect business taxes).
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income • Compensation of Employees Compensation of employees consists of wages and salaries paid to employees plus employers’ contributions to Social Security and employee benefit plans plus the monetary value of fringe benefits, and paid vacations etc. • Proprietors’ Income Proprietors’ income includes all forms of income earned by self-employed individuals and the owners of unincorporated businesses, including unincorporated farmers. • Corporate Profits Corporate profits include all the income earned by the stockholders of corporations.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income • Rental Income Rental income is the income received by individuals for the use of their nonmonetary assets (land, houses, offices). It also includes returns to individuals who hold copyrights and patents. • Net Interest Net interest is the interest income received by Indian households and government minus the interest they paid out.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income to GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income Calculate National Income Calculate GDP Calculate GNI
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Personal Income • Personal Income (PI) -Personal income is the income received by the factors of production. - Not all income earned is received, and not all income received is earned • An example of “income earned but not received” is undistributed profits. • An example of “income received but not earned” is Social Security benefits.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Personal Income PI = National Income -Undistributed corporate profits (Retained Profit) -Corporate Profit Taxes -Payment to social security contributions +Transfer payments*(social security benefits received from the Govt) • *A transfer payment is a payment of money for which there are no goods or services exchanged. (Ex. Old age pension)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Personal Income Suppose that the transfer payment is $10, retained profit is $2, corporate profit tax is $1 and contribution to social security is $5. Calculate Personal Income
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Disposable Income • Disposable Income (DI) -Actual income available for spending by an individual after paying the direct taxes. -Amount of nominal income available for consumption (and Saving) -DI = PI – Direct tax
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Measure Definition/Calculation GVA = Total Output - Cost of intermediate goods & services GDP = GVA - Subsidies GNI = GDP + (Net income from abroad) National Income = GNI - (Depreciation+ Indirect Business Taxes) Personal Income = National Income (NI) - (Retained profit + Corporate profit tax+ Contribution to social security benefits) + Transfer Payments Disposable Income = Personal Income - Direct Tax (Income tax)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Approaches to GDP Measurement GDP can be calculated using 3 methods -Product Method (Value added approach) -Income method -Expenditure Method and
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement –Value Added Approach • Consider a simple economy in which one good is produced and sold. • 1. Ramya finds a seed and plants it. Sometime later, an orange tree appears. • 2. Ramya pays Arun $5 in wages to pick and box the oranges. • 3. Next, Ramya sells the oranges to Pooja for $8. • 4. Pooja turns the oranges into orange juice and sells the orange juice to Carol for $10. • Carol drinks the juice.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement –Value Added Approach • Value Added Approach in India… • GDP data is compiled by Central Statistical Organisation under the Ministry of Statistics and Programme Implementation. • For the purpose of GDP, the economy is classified into 15 broad sectors like Agriculture, manufacturing, mining, Forestry, Fishing, Electricity, Gas and Water Supply, construction, Trade, Hotels, Restaurants, Railways, Transport, Communication, Banking, Insurance, Public Admin. & defense, Real Estate and other services..
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement- Value Added Approach • The contribution of various sectors to the gross domestic product (GDP) is estimated in terms of gross value added (GVA). • Gross Product - Valuation of products and by- products at market prices. • Gross Value added = Gross product - value of inputs of raw materials and services consumed in the process of production Hence, GDP = GVA - Subsidies
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement – Income Approach • Consider a simple economy in which one good is produced and sold. • 1. Ramya finds a seed and plants it. Sometime later, an orange tree appears. • 2. Ramya pays Arun $5 in wages to pick and box the oranges. • 3. Next, Ramya sells the oranges to Pooja for $8. • 4. Pooja turns the oranges into orange juice and sells the orange juice to Carol for $10. • Carol drinks the juice.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income Calculate National Income
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement – Income Approach
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers National Income Calculate GDP
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement –Expenditure Approach • Consider a simple economy in which one good is produced and sold. • 1. Ramya finds a seed and plants it. Sometime later, an orange tree appears. • 2. Ramya pays Arun $5 in wages to pick and box the oranges. • 3. Next, Ramya sells the oranges to Pooja for $8. • 4. Pooja turns the oranges into orange juice and sells the orange juice to Carol for $10. • Carol drinks the juice.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Gross Domestic Product (GDP) • Compute GDP Final Consumption Expendiure by Households $100000 Govt. Consumption Expenditure $5000 Public Capital Formation by Govts $10000 Expenditure on building and equipment and software by firms $50000 Expenditure on new residence by households $1000 Opening Inventory $500 Clsoing Inventory $750 Export $15000 Import $12000
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers GDP Measurement –Expenditure Approach • Expenditure Method -Total expenditure of money used to buy goods & services is another way of measuring production. • Components of GDP in Expenditure Method • GDP = C + I + G+ (X-M) C –Final Consumption Expenditure I –Investment Expenditure G - Govt Expenditure X-M - Net exports
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Approaches to GDP Measurement • Consumption Expenditure(C) -Expenditure on final goods & services by households • Investment Expenditure (I) - Expenditure on building and equipment and software by firms and new residence by households and changes in inventory.
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Approaches to GDP Measurement • Government Expenditure (G) -Consumption expenditure -Public capital formation. • Net Exports (X-M) -Value of exports minus value of imports (X-M) So, GDP= C+I+G+ (X-M)
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Approaches to GDP Measurement • Concepts of GDP- GDP, NDP, Nominal and Real GDP, GNI, NI, PI & DI • Concepts of National Income- GDP, GNI, NI, PI and DI • Components of National Income • Approaches to GDP measurement
Title of the topic Name of the faculty AIMIT, St Aloysius College (Autonomous) MULTIPLE REGRESSION ANLYSIS Dr. DHANANJAYA K Time Series Analysis Economics for Managers Nominal GDP and Real GDP • 𝑪𝑷𝑰 = 𝑷𝒓𝒊𝒄𝒆 𝒊𝒏 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝑷𝒓𝒊𝒄𝒆 𝒊𝒏 𝒃𝒂𝒔𝒆 𝒚𝒆𝒂𝒓 ∗ 𝟏𝟎𝟎 2011-12 (Base Year 2019 2020 20 25 30 Price of Rice (in Rs.)

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