Professional Documents
Culture Documents
TO OUR
PRESENTATION
PRESENTED TO:
DR. MOHAMMAD BAYEZID ALI
ASSOCIATE PROFESSOR
DEPARTMENT OF FINANCE
JAGANNATH UNIVERSITY, DHAKA.
PRESENTED BY:
GROUP-04
GROUP: 4
SL ROLL NAME
NO.
1. B-120203032 RAJIB HUSSAIN
2. B-120203034 ASIBUL ISLAM MILU
3. B-120203043 TAJRIMA SULTANA SRISTI
4. B-120203045 MOHAMMAD WASHIM
5. B-120203047 RASEL AHAMED
6. B-120203055 SUJAN BHUIYAN
7. B-120203071 GAZI RAFSAN SHAHAB
8. B-120203137 AFRIN KHAN
9. B-110203091 EHSUN HOQUE
OUR TOPIC
ON
THE USES AND LIMITATIONS OF REAL GDP
GAZI RAFSAN SHAHAB
ID: B-120203071
THE USES AND LIMITATIONS OF REAL GDP
The economic growth rate is the percentage change in the quantity of goods
and services produced from one year to the next.
2. HOUSEHOLD PRODUCTION
We know that GDP only count the market production not home
production. But in our country many home production takes place
every day. If this home production takes the place of market
production than this production will be counted in real GDP. But
actually this production is not related in counting real GDP. So there
will be a problem in counting real GDP.
ECONOMIC WELFARE COMPARISONS OVER TIME
5. LEISURE TIME
Leisure time, a valuable component of an individual’s welfare, is not
included in real GDP. Yet from the economic welfare view that leisure
time must be at least as valuable as the wage we earn last hour worked.
Over the years , leisure time has steadily increased. The workweek
become short and vacation days increased. These development in
economic well-being does not reflected in real GDP.
ECONOMIC WELFARE COMPARISONS OVER TIME
6. ENVIRONMENT QUALITY
Environmental damage is not deducted from real GDP. The burning
of hydrocarbon fuel most notable activity hampers environment.
Resources that are used to save the nature are valued as part of GDP.
An industrial society produce more atmospheric pollution than
agricultural society . But population does not always increase as we
become wealthier. Wealthy people value a clean environment and
are willing to pay for one.
ECONOMIC WELFARE COMPARISONS OVER TIME
1. The real GDP of one country must be converted into the same
currency units as the real GDP of the other country.
2. The goods and services in both countries must be valued at the same
prices.
ECONOMIC WELFARE COMPARISONS ACROSS
COUNTRIES
Using the exchange rate to compare GDP in one country with GDP in
another country is problematic.
For example, using the market exchange rate to value Chinese GDP in
dollars leads to an estimate that in 2008, U.S. real GDP per person was
19 times Chinese real GDP per person.
ECONOMIC WELFARE COMPARISONS ACROSS
COUNTRIES
Figure 5.4 illustrates the
problem.
Note: PPP means the expenditure on a similar commodity must be same in both currencies when accounted for exchange rate.
RAJIB HOSSAIN
ID: B-120203032
BUSINESS CYCLE FORECASTS