In order to facilitate GDP calculations, imports can be considered a loan from a foreign country. The value of the imported goods is the value of the loan. For example, assume that Country C produces 1,000 pairs of shoes each year. The shoe soles are imported from a neighboring country, so the added value of Country C is 1,000 pairs of shoes minus 1,000 pairs of soles. The soles cost $1 each, meaning that Country C owes $1,00
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Calculating GDP for a Country with Imports
- Introduction
- Declining Marginal Output and Increasing Marginal Costs
- Production Possibilities Curve
- Background to the Production Possibilities Curve
- Shape of the Production Possibilities Curve With an Illustration
- Under-use of Resources
- Opportunity Cost Definition
- Three Types of Costs
- Other Examples of Marginal Cost
- Shifts in the Production Possibilities Curve
- Causes of Improvement in Manufacturing Capability
- Causes of Decline in Manufacturing Capability
- Marginal Cost
- Production Possibilities Curve – A Summary
- The Purpose of the Scenarios
- Comparative Advantage
- Gross Domestic Product and National Accounts
- GDP – Gross Domestic Product
- Calculating Gross Domestic Product for a Country
- The Difference Between Capital Goods and Consumer Goods
- Methods of Calculating GDP or Gross Domestic Product
- GDP is also the national income
- Calculating GDP for a Country with Imports
- GDP Calculation Process
- The Uses of GDP (Gross Domestic Product)
- The effect of Imports
- National Accounts
- Gross Investment and Net Investment
- GDP vs. NDP
- Capital Investments Constitute a Nations Savings
- The Sources and Uses Form
- Understanding The PPC Curve
- GDP and NDP
- National Accounts – Summary
- Demand and Supply
- The Household
- The Central Bank
- The Function of Commercial Banks
- What Money Is
- Bank Lending
- The process by which the bank increases the money supply
- The Reserve Ratio
- How To Make the Money grow?
- Bankruptcy
- Reserve Ratio and Money Supply
- The Effect of Michael’s Gift According to a Different Scenario
- Bank Balance Sheet Format
- Deposit Multiplier and Loan Multiplier
- Understanding The Monetary Base
- The Central Bank
- Appendix A- The Financial Statements of a Firm
- Income Statement Example – Simplified
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