Suppose GDP was 10 trillion in 2000 (in 2000 dollars) and 15 trillion in 2010 (in 2010 dollars).?
Suppose GDP was 10 trillion in 2000 (in 2000 dollars) and 15 trillion in 2010 (in 2010 dollars). If the country experienced 20% inflation over those ten years, what was the 2000 GDP expressed in 2010 dollars?
If every person on the planet of 7 billion was given an equal evenly split salary per month. How much would it be?
If you subtract, (the number of children under 15 years [1.9 billion] + the number of adults over the age of 65 [617 million]), from the 7.4 billion total population, you will find a more accurate number of working age individuals, [4,737,500,000 working age people globally]. So, if you divide the world’s total wealth, ($241 trillion), evenly over the total working age population, (4.7375 billion), you will arrive at a yearly salary of $50,870.71, or $26.50/hr. This is a salary that is well over the proposed $15/hr that is supposed to, but no longer, represents a living wage. This salary commonly represents the middle class and a comfortable standard of living. Although in the US alone, (which is ranked at the 13th richest country in the world), 73.4% of workers make less than $50k per year.Inequality is worth getting angry about.
How does rebasing change GDP calculation?
So the question you're meaning to ask is "What are the effects of rebasing?"Rebasing simply means changing the base year while calculating the nominal GDP i.e GDP at "Current Market Price"GDP is typically measured by reference to the shape of the economy in a “base” yearStatisticians sample businesses in different industries to see how fast they are growing.The weight they give to each sector depends on its importance to the economy in the base year. As time passes the figures become less and less accurate. Now, just because you change the base year doesn't always mean your economy size would increase dramatically.When you do a base change, the value added gets pushed up in some sectors and pulled down in others. there could be new sectors which get added, which pushes it's value up.Now lets take a realistic example related to India.India's crude steel production in 2006 was stagerring 49.5 million tonnes, but in 2012 it grew to a rather large 76.7 million tonnes.India's wheat production rose to 85 million tones in 2011-12 from 65 million tonnes (2005-06 figs.)Besides Crude Steel and wheat production, India's E-commerce Market, which stood at $2.5 billion in 2009, reached $8.5 billion in 2012 and rose 88 per cent to touch $16 billion in 2013. India's e-commerce market rose 88% in 2013: SurveyHow did this happen? In 2005 India's E-commerce Industry wasn't as flegging as it used to be. This happened because India's internet base grew enourmously from 40 million to 200 million in 2013. Internet base in India crosses 200 million markAgriculture sector flourished since 2005, Indian Farmers income rose predominantly hence they were able to practice new and modern techniques.Industrial Sector also did a nice job, Special Economic Zones were commisioned by erstwhile Vajpayee government, Incentives were given to increase manufacturing, Steel production rose hence contributing to manufacturing sector.In short the economy didn't have a clear picture as the base year for indian statisticians was 2005.From now on, it will be the year that ended March 2012. The revised calculation also incorporated more-comprehensive data on corporate activity and newer surveys of spending by households and informal businesses. India Changes GDP Calculation Method
What is the difference between nominal GDP, GDP PPP and GDP per capita?
Real GDP is the real value of goods and services produced in an economy in a time period which is generally a quarter or a year.Suppose a country produces only two products A and B then its GDP can be calculated as: (Quantity of A produced * Price of A) + (Quantity of B produced * Price of B)Quantity of A produced: 5; Price of A: 10Quantity of B produced: 10; Price of B: 20 GDP=(5*10)+(10*20)=50+200=250Now, in an economy price of goods(A and B in this case) fluctuates. So this may not give the real value of goods and services produced if there has been a price rise and decline in quantity produced.Quantity of A produced: 4; Price of A: 15Quantity of B produced: 8; Price of A: 25GDP=(15*4)+(8*25)=260So does the GDP increase in this case? No, just the prices.In order to calculate the actual value of goods and services current market prices are not taken. A base year is taken and the GDP is calculated using the prices in that year. This amount thus calculated is termed as Real GDP.PPP or purchasing power parity is a theory which compares the prices of goods and services in different countries.Nominal exchange rate = Rs. 50 for $1Price of product 1*(A+B) in India= Rs. 100 (Quantity of A and B both are equal to 1)Price of product 1*(A+B) in USA=$2 (=Rs.100)The rupee is said to be in purchasing power parity with dollar if the cost of same quantities of products are same in India and USA when calculated in the same currency. In the case above, cost of buying product A and B is same in US and India(in rupees), thus rupee is said to be in Purchasing Power Parity with dollar .