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    Lecture 2.2

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    Sam Chan
    This document provides a numerical example to calculate GDP using the expenditure approach. It lists goods and services (Converse shoes, Nike shoes, truck) along with their price, quantity, and current market value for years 2004, 2007, and 2008. GDP is calculated as the sum of the current market value of all final goods and services produced within a country in a given year. The GDP numbers computed here using prevailing prices are nominal GDP.

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    Lecture 2.2

    Uploaded by

    Sam Chan
    22 views1 page
    This document provides a numerical example to calculate GDP using the expenditure approach. It lists goods and services (Converse shoes, Nike shoes, truck) along with their price, quantity, and current market value for years 2004, 2007, and 2008. GDP is calculated as the sum of the current market value of all final goods and services produced within a country in a given year. The GDP numbers computed here using prevailing prices are nominal GDP.

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    ECON1220 HKU

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    lecture 2.2

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    This document provides a numerical example to calculate GDP using the expenditure approach. It lists goods and services (Converse shoes, Nike shoes, truck) along with their price, quantity, and current market value for years 2004, 2007, and 2008. GDP is calculated as the sum of the current market value of all final goods and services produced within a country in a given year. The GDP numbers computed here using prevailing prices are nominal GDP.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    22 views1 page

    Lecture 2.2

    Uploaded by

    Sam Chan
    This document provides a numerical example to calculate GDP using the expenditure approach. It lists goods and services (Converse shoes, Nike shoes, truck) along with their price, quantity, and current market value for years 2004, 2007, and 2008. GDP is calculated as the sum of the current market value of all final goods and services produced within a country in a given year. The GDP numbers computed here using prevailing prices are nominal GDP.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Numerical

    Example 1

    Goods and Services

    Current Price ( Pt )

    Quantity ( Qt )

    Current Market Value


    ( Pt xQt )

    2004

    2007

    2008

    GDPt
    = Pt1Qt1 + Pt 2 Qt2 + Pt 3 Qt3 + ..... + Pt N QtN

    (1) Converse running shoes

    $500

    60

    30000

    150000

    (2) Nike running shoes

    $400

    50

    20000

    (3) Truck

    $100,000

    100000

    (1) Converse running shoes

    $1,000

    60

    60000

    (2) Nike running shoes

    $800

    50

    40000

    (3) Truck

    $200,000

    200000

    (1) Converse running shoes

    $1,500

    55

    82500

    (2) Nike running shoes

    $1,000

    55

    55000

    (3) Truck

    $200,000

    200000


    Note: The GDPs computed above are using the prices that prevail in the current period, hence, they are the nominal GDP.

    300000

    337500

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