GDP

Cf. Parkin Chapter 5Winter 2009

Econ 102 Prof. SmitkaWashington & Lee University

GDP

• Y = C + I + G + X – M = final purchases = production

• What is & isn’t part of C, I, G, X-M• Purchases = income: w + i + r + pi + π + (τ + δ)

wages, net interest & dividends, rents, proprietors’ income, retained earnings (and sales & other indirect taxes and depreciation)

• US GDP measurement vs China’s: PPP• 1929 US GDP vs 2008 US GDP: real, nominal• Other conceptual and measurement issues

US Real GDP Growth

YearNominal

GDP Per CapitaNominal

GDPReal

GDP Per CapitaReal

GDP Populationcurrent

US$current

US$ billionReal 2000

US$Real 2000 US$ billion miilions

1929 847 104 7,077 865 122.3

1933 449 56 5,061 636 125.6

1935 576 73 6,027 767 127.3

1940 766 101 7,807 1,034 132.5

1945 1,753 223 14,038 1,786 127.3

1950 1,935 294 11,703 1,777 151.9

1955 2,513 415 13,405 2,213 165.1

1960 2,925 526 13,901 2,502 180.0

1965 3,716 719 16,489 3,191 193.5

1970 5,091 1,039 18,491 3,772 204.0

1975 7,604 1,638 20,009 4,311 215.5

1980 12,276 2,790 22,716 5,162 227.2

1985 17,738 4,220 25,444 6,054 237.9

1990 23,247 5,803 28,493 7,113 249.6

1995 27,782 7,398 30,163 8,032 266.3

2000 34,788 9,817 34,788 9,817 282.2

2005 41,981 12,422 37,140 10,990 295.9

2008q3 47,473 14,413 38,579 11,712 303.6

US Real and Nominal GDP

　 1997 2007 Δ 　 1997 2007 ΔBelgium 125.6 118.2 -6% Austria 131.3 124 -6%Bulgaria 26.4 37.3 41% Poland 46.8 53.4 14%Czech Republic 72.9 80.2 10% Portugal 76.1 76.2 0%Denmark 133.2 120.1 -10% Romania : 42.2 　Germany 124.3 114.8 -8% Slovenia 77.7 89.3 15%Estonia 41.8 68 63% Slovakia 51.3 67 31%Ireland 114.7 150.4 31% Finland 110.7 115.9 5%Greece 84.6 94.9 12% Sweden 123.4 122.2 -1%

Spain 93.3 105.5 13%United Kingdom 118.2 119.2 1%

France 114.6 109.2 -5% Croatia 47 58.5 24%Italy 119 101.5 -15% Macedonia 26.6 30.3 14%Cyprus 85.8 90.7 6% Turkey 32.1 43.7 36%Latvia 34.6 54.7 58% Iceland 137.6 119.2 -13%Lithuania 38.1 59.5 56% Norway 147.4 178.6 21%Luxembourg 214.6 266.5 24% Switzerland 150.8 137.3 -9%

Hungary 51.5 62.6 22%United States 160.3 152.6 -5%

Malta 80.5 77.8 -3% Japan 127.8 112.2 -12%Netherlands 127 131 3% 　moved toward mean 　 start above average 　 start below average