Question

What other fuzzy things can you discover in the video or transcript that the Government does when cooking the GDP?

Answer 1

The gross domestic product (GDP) of a nation is an estimate of the total value of all the goods and services it produced during a specific period, usually a quarter or a year. Its greatest use is as a point of comparison: Did the nation's economy grow or contract compared to the previous period measured?

• GDP can be calculated by adding up all of the money spent by consumers, businesses, and government in a given period.
• It may also be calculated by adding up all of the money received by all the participants in the economy.
• In either case, the number is an estimate of "nominal GDP."
• Once adjusted to remove any effects due to inflation, "real GDP" is revealed.

There are two main ways to measure GDP: by measuring spending or by measuring income.

And then there's real GDP, which is an adjustment that removes the effects of inflation so that the economy's growth or contraction can be seen clearly.

Calculating GDP Based on Spending

One way of arriving at GDP is to count up all of the money spent by the different groups that participate in the economy. These include consumers, businesses, and government. All pay for goods and services that contribute to the GDP total.

In addition, some of the nation's goods and services are exported for sale overseas. And some of the products and services that are consumed are imports from abroad. The GDP calculation accounts for spending on both exports and imports.

Thus, a country’s GDP is the total of consumer spending (C) plus business investment (I) and government spending (G), plus net exports, which is total exports minus total imports (X – M).

You didn't provide the video. I have no option to reply you back. Please repost the question if further assistance required.