Transcript Slide 1

Data collected and published in currency by
Government describing the various
components of economic activities of a
country within one year
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GDP is the total market value of a country’s
output. It is the market value of all final
goods and services produced within a given
period of time by factors of production
located within a country
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GNP (Gross National Product) is the total
market value of all final goods and services
produced by factors of production owned
by a country’s citizens, regardless of where
the output is produced
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net factors
income from
abroad
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Goods and services produced for final use
Goods that are produced by one firm for use in further
processing by another firm
The difference between the value of goods as
they leave a stage of production and the cost of
goods as they entered that stage
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There are three methods or approaches to calculating GDP:
1. Production approach
2. Expenditure approach
3. Income approach
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In calculating GDP we can either sum up the value added at each stage of production
or we can take the value of final sales
Output
Sales
Value added
Producer 1
Cotton
100
100
Producer 2
Yarn
300
200
Producer 3
Fabric
550
250
Producer 4
Clothes
750
200
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750
Expenditure categories:
 Personal consumption expenditures (C) – household spending on
consumer goods
 Gross private domestic investment (I) – spending by firms and
households on new capital: plant, equipment, inventory, and new
residential structure
 Government consumption and gross investment (G)
 Net exports (EX – IM) – net spending by the rest of the world, or
exports (EX) minus imports (IM)
GDP = C + I + G + (EX – IM)
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Personal consumption expenditures ( C )
 Durable goods – Goods that last relatively long time, such as cars and
household appliances
 Non durable goods – Goods that are used up fairly quickly, such as
food and clothing
 Services – The thing we buy that do not involve the production of
physical thing, such as legal and medical services and education
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Total investment in capital – that is the purchase of new housing, plants,
equipment, and inventory by the private (or non government) sector.
Nonresidential investment
Expenditures by firms for machines, tools, plants, and so on
Residential investment
Expenditures by households and firms on new houses and apartment building
Change in business inventory
The amount by which firm’s inventories change during a period.
Inventories are goods that firms produce now but intend to sell later
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Depreciation
The amount by which an asset’s value falls in a given period
Gross investment
The total value of all newly produced capital goods (plant, equipment, housing, and
inventory) produced in a given period
Net investment
Gross investment minus depreciation
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Expenditures by government for final goods (weapons, pencils, school
building) and services (military salaries, DPR salaries, school teachers
salaries). Some of these expenditures are counted as government
consumption and some are counted as government gross investment
The difference between exports (sales to foreigners of IDR – produced goods
and services) and imports (IDR purchases of goods and services from
abroad). The figure can be positive or negative.
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Amount
Percentage
10,205.6
100.0
Personal consumption expenditure ( C )
• Durable goods
• Non durable goods
• Services
7,063.5
858.2
2,055.0
4,150.2
69.2
8.4
20.1
40.7
Gross private domestic investment ( I )
• Nonresidential
• Residential
• Change in business inventories
1,634.0
1,246.6
446.1
-58.6
16.0
12.2
4.4
-0.6
Government consumption and gross inv ( G )
• Federal
• State and local
1,839.3
615.7
1,223.6
18.0
6.0
12.0
Net exports ( EX-IM )
• Exports
• Imports
-331.2
1,049.4
1,380.7
-3.2
10.3
13.5
Total Gross Domestic Product
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National income
The total income earned by the factors of production owned by a country’s citizens
Compensation of employees
Includes wages, salaries, and various supplements – employer contributions to social
insurance and pension funds, for example – paid to households by firms and by the
government
Proprietors’ income
Corporate profits
The income of unincorporated business
The income of corporate business
Net interest
The interest paid by business
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Rental income
The income received by property owners in the form of rent
Indirect taxes
Taxes like sales taxes, customs duties, and license fees
Subsidies
Payments made by the government for which it receive no goods or services in return
Net factor payments to the rest of the world
Payments of factor income to the rest of the world minus the receipt of factor income
from the rest of the world
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Amount
Percentage
10,205.6
100.0
8,199.9
80.3
6,010.0
58.9
Proprietors’ income
743.5
7.3
Corporate profits
748.9
7.3
Net interest
554.8
5.4
Rental income
142.7
1.4
1,351.3
13.2
739.4
7.2
11.1
0.1
-96.1
- 0.9
Total Gross Domestic Product
National income
Compensation of employees
Depreciation
Indirect taxes minus subsidies
Net factor payments to the rest of the world
Other
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Net National Product (NNP)
Gross national product minus depreciation; a nation’s total product what is required to
maintain the value of its capital stock
Personal income
The total income of households. Equals (national income) minus (corporate profits
minus dividends) minus (social insurance payment) plus (interest income received from
the government and households) plus (transfer payment to households). The income
received by households after paying social insurance taxes but before paying personal
income taxes
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Disposable personal income (disposable after-tax income)
Personal income minus personal income taxes. The amount that households have to
spend or save
Personal saving
The amount of disposable income that is left after total personal spending in a given
period
Personal saving rate
The percentage of disposable personal income that is saved. If the personal saving rate
is low, households are spending a large amount relative to their incomes; If it is high,
households are spending cautiously
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Amount
10,205.6
GDP
Plus: receipts of factor income from the rest of the world
Less: payments of factor income to the rest of the world
10,194.5
GNP
- 1,351.3
Less: Depreciation
8,843.2
NNP
Less: indirect taxes minus subsidies plus other
- 1,351.3
8,199.9
National income
Less: corporate profits minus dividends
Less: social insurance payments
Plus: personal interest income received from government and consumers
Plus: transfer payments to persons
Personal income
- 332.6
- 731.2
+ 439.1
+ 1,148.7
8,723.9
Less: personal taxes
- 1,306.2
7,417.7
Disposable personal income
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+ 342.1
- 353.2
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Gross domestic product measured in currency
Nominal GDP divided GDP price index
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Year 1
Year 2
Q
P
Q
P
1000
2
1010
2,5
GDP PI
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GDP Nominal
Year 1
GDP Nominal
Year 2
2000
2525
2:2
2,5:2
2000:1
2525:1,25
=
=
=
=
1
1,25
2000
2020
GDP Real
Year 1
GDP Real
Year 2
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Growth
26,25%
1%
We generally think of increases in GDP as good. Increasing GDP (or preventing its
decrease) is usually considered one of the chief goals of the government’s
macroeconomic policy. Because some serious problem arise when we try to use GDP as
a measure of happiness or well-being, we now point out some of the limitations of the
GDP concept as a measure of welfare.
Measuring adjusted national product includes
consumption commodity and investment that
contribute to social welfare
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Tingkat Kemandirian Kota Bitung Tahun 2005 - 2008
Tahun anggaran
Pendapatan
Asli Daerah
2005
8.084.661.789,52
173.984.515.859,52
4,64 %
2006
10.242.334.514,70
278.483.147.305,22
3,67 %
2007
10.178.349.950,00
333.647.390.264,00
3,05 %
2008
17.392.736.281,93
369.257.878.870,93
4,70 %
Total Penerimaan
Pendapatan
Asli Daerah
Rasio Tingkat
Kemandirian
X
=
Total Penerimaan
Sumber: Skripsi Enal 2009
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100 %
Tingkat
Kemandirian
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