how do u measure economic growth??? (1 Viewer)

[supermike]

hey i really need to know the method/formula of measuring economic growth for an asessment!! i got dixon and bulmer but both place emphasis on calculations about equilibrium and multiplyer process!! i just cant find any text from them that explicitly explains how to measure econmic growth!!!!
thanks in advance for the help!!! really appreciate it!!!!!!!
cheeeeeeeeeeers!!!!!!

 

[absorber]

Facepalm, dixon has it... (GDP of year 2 - GDP of year 1)/GDP of year 1 x 100/1 for percentage

 

[blaze.bluetane]

Economic Growth is measured by the change in real [adjusted for inflation] GDP from one period to the next.

Within Australia, economic growth is measured as a percentage change of real GDP per annum and is calculated for each quarterly period by the ABS; it is also measured in terms of real GDP per capita changes.

Four key measures are utilised to calculate changes in real GDP; production measure [GDP (P)], expenditure measure [GDP (E)], income measure [GDP (I)] and average GDP [GDP (A)], the latter being considered the most accurate in terms of official measurement.

 

[munchiecrunchie]

also be wary that there is a difference between the amount of economic growth and the economic growth RATE

the above posts show you how to calculate the economic growth RATE (which is what you usually have to do)

if they ever ask you just to calculate the amount of economic growth, all you have to do is:

GDP of year 2 MINUS GDP of year 1

 

[supermike]

also be wary that there is a difference between the amount of economic growth and the economic growth RATE

if they ever ask you just to calculate the amount of economic growth, all you have to do is:

GDP of year 2 MINUS GDP of year 1

wouldn't that be calculating the CHANGE inamount of GDP???

thank you ppl