Premium Essay

Economics Gdp Comparison

In: Business and Management

Submitted By ro13by
Words 1417
Pages 6
Introduction
Indonesia rely its economy through various activities. The resources and commodities includes agricultural i.e. tea, coffee, beans, etc.; Mining i.e. coal, crude oil, valuable stones, etc.; Plantation i.e. palm oil, and many others.
There are some tourism attraction spots that contribute in the GDP, such as Bali, Lombok, Yogyakarta, etc. Although, the maximum value of the resources have not achieved yet, the GDP of Indonesia is already top 5 in Asia.
Indonesia has made a positive and stable trend in these past ten years, few reasons that caused this to happen is the stability of the political condition that in a sense favor the people more and more, which pushes job creation in many sector and decreases unemployment. Even though the currency is weakened over time but the overall living standard is boost up, this can be seen from the rise of the middle or even middle-high income population as the economy improves.

Production Output Performance Analysis
Real GDP (GDP Constant Prices) of Indonesia 2005-2014

For almost six years from 2005 to late 2009, real gross domestic product has been relatively the same around 500,000 billion rupiah or equivalent to 38 million US dollar. Global financial crisis on 2008 to 2009 surprisingly did not make a significant impact on the value of real GDP, as the value fell not below the previous lines.
In fact shortly after, its value was rocketing more than three times in less than quarter of a year to 1,800,000 billion. During steady and increasing trend on real GDP value on the next years, there was one notable point where the value plunged down 1.6 times in 2013 from 200,000 billion to 125,000 billion rupiah, and rose again to 220,000 billion at the same year.

GDP (Annual) Growth Rate of Indonesia 2005-2014

The flow of the graph in overall shows a decreasing trend. It is started on late 2005 where the…...

Similar Documents

Premium Essay

Economic Comparison of South Korea and Japan

...An Economic Comparison of Japan 日本国 And South Korea 대한민국 Introduction South Korea and Japan have had a close relationship from ancient history to the present day. Because of this reason, their economic growth and development have similarities and disparate differences. This paper will discuss some of the two countries’ major characteristics including geographic, social, and political characteristics and look at their histories and economies. Another reason that it is natural to compare them is their economic growth has mirrored one another. Both emerged from a war with its economy devastated and its infrastructure in ruins. Both countries changed with the economic climate of the time and took advantage of foreign investment in order to rebuild. Finally, both countries used their strengths to develop their economies to the point that they are world leaders in their field. Finally, both counties enjoy close political and economic relations with the United States, with each country being among our Top 10 largest trading partners. We have been a good friend to both, which has helped to stabilize relations in the regions between the two. Brief History (Since World War 2) The Korean Peninsula was occupied by Japanese forces for 35 years, from 1910 until the end of WW2 in 1945. Due to existing agreements, Japanese forces in Northern Korea surrendered to the Soviets and those in South Korea to the United States. The Korean War (1950-1953) was an......

Words: 2960 - Pages: 12

Premium Essay

Gdp & Economics as a Social Science

...Discussion Questions Individual Why is economics considered a social science? What role does economics play in your personal and professional lives? According to Colander (2010), economics is the study of how people coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. There are three central problems in economics; what and how much to produce, how to produce, and for whom to produce. As a society of human beings, people make decisions based on cost and benefits (Colander, 2010). Because it analyzes how and what people do in certain circumstance typically involving money and goods, economics is considered a social science. In my personal and professional life, I am constantly making economic decisions when it comes to choosing between social parties with friends or work. Some of my friends are still in school and do not work. I work full time and go to school, so I cannot always afford to stay out as late as others. My choice is not so much about spending money, but based more on my time management and the need of getting sleep for work the next morning versus staying out late and partying with friends. What is the difference between real and nominal GDP? Does GDP accurately reflect the nation’s welfare? Why or why not? How can a country’s GDP be manipulated? In your opinion, is the U.S. GDP being manipulated? Explain your answer. GDP stands for gross domestic product, and “is a measure of the......

Words: 496 - Pages: 2

Premium Essay

Why Gdp Is Not a Perfect Measure of Economic Well Being of a Nation.

...Explain why GDP is not a perfect measure of economic well being of a nation. By definition the GDP (Gross Domestic Product) is a measure of the income and expenditures of an economy. Also, it can be defined as the total market value of all final goods and services produced within a country in a given period of time. Base on GDP definition and base on many economist points of view regarding to the definition of well being. I understand that GDP is not a perfect measure of economic well being of a nation for many reasons: 1. The gross domestic product (GDP) is not a sufficient measure because it fails to capture important ingredients of prosperity, such as health, personal freedom, and security. 2. GDP excludes the value of leisure:  Leisure is an economic good. All other things being equal, more leisure is better than less leisure. But all other things are not likely to be equal when it comes to consuming leisure. Consuming more leisure means supplying less work effort. And that means producing less GDP. If everyone decided to work 10% fewer hours, GDP would fall. But that would not mean that people were worse off. In fact, their choice of more leisure would suggest they prefer the extra leisure to the goods and services they give up by consuming it. Consequently, a reduction in GDP would be accompanied by an increase in satisfaction, not a reduction. 3. GDP excludes the value of non-market activities, even though these activities are productive and......

Words: 628 - Pages: 3

Premium Essay

Economic Development: a Comparison of Rostow and Gerschenkron

...“Rostow’s pattern of thought of economic development is often compared and contrasted with that of Alexander Gerschenkron, though the two are more or less compatible and complementary.” Critically discuss this statement. The theory of economic development throughout history has been of significant discussion especially in regard to the works of Rostow and Gerschenkron. The differentiation between the pattern of thoughts and ideals is a hotly debated topic within economics. The ideals the two theorists create, each substantially creditable in their own right, entail degrees of correlation and variation. Leaving the conclusion, do the to patterns of economic thought complement one another or is there distinct disparity between the two. Applied examples will be used below to analyse the extent of segregation or association between the works of Rostow and Gerschenkron. The two theories of work are mainly discussed with Asian development as it is more relevant, timely and there is significantly more information available than previous developed countries such as Great Britain. Walt Whitman Rostow developed one of the major historical models of economic growth in 1960, The Stages of Economic Growth: A non-communist manifesto. This piece portrays the process of economic development in a previously unseen approach, evidently forging it as a milestone in economic literature. Rostow's Stages of Growth model, The five stages are (1) the traditional society, (2) the......

Words: 2883 - Pages: 12

Premium Essay

Gdp

...INTRODUCTION: GDP (Y) is the measure of the value of all final goods and services bought for their final use in an economy for a given time period. The model of the circular flow of income makes it apparent that, in a given time period, income equals amount of expenditure which in turn equals the value of output sold in the economy as a whole. Income = Expenditure = Output (Value Added) Therefore, there are three methods to measuring GDP. These are the Income, Expenditure and Output methods. The income method measures GDP by adding together the total of all factor incomes paid to households by firms for the use of resources. Incomes are divided into 5 categories: compensation of employees, interest for capital, rental income, profits for entrepreneurship and proprietor’s income. Seeing as incomes are calculated at factor cost rather than market price, further adjustments must be made to calculate GDP. Indirect business taxes and depreciation incurred must be added and subsidies subtracted. Y = Income + Depreciation + Indirect Business Taxes + Net Income - Subsidies The expenditure method measures GDP by adding together all expenditures on all final goods and services made by all sectors of the economy. Expenditure is divided into 4 categories: Consumption Expenditure (C), Investment (I), Government Purchases of goods and services (G) and Net Exports (Exports – Imports) (NX). Y = C + I + G + NX The output method measures GDP by adding together the...

Words: 896 - Pages: 4

Premium Essay

Economic Growth and Gdp

...Learaye Macroeconomics Economic Growth & GDP “Gross domestic product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of neither public debate not the integrity of our public officials. It measures neither our courage nor our wisdom, not the devotion to our country. It measures everything, in short, except that which makes life worthwhile and it can tell us everything except why we are proud to be Americans.” Quote by Robert F. Kennedy GDP GDP is not a measurement of overall prosperity of a nation and it fails to measure some aspects of a national economy. As you can gain from the quote by Robert F. Kennedy, we do not use this to measure those things which “make life worthwhile” but rather use it to judge one country from another. It helps to evaluate how societies function in different economic environments and how to use this measurement to improve conditions in a society or to keep things flowing for a healthy economy. Gross Domestic Product (GDP) is defined as the total market value of final goods and services produced by factors of production. GDP also measures markets of what is being produced or whether problems are occurring. There is a relationship presented with a circular flow model that gives us a picture of the flow of production being produced in an economy. The circular flow model......

Words: 1164 - Pages: 5

Premium Essay

To What Extent Do National Income Statistics (Gdp) Provide a Good Basis for Comparison Between Countries?

...Economics Essay – To what extent do national income statistics (GDP) provide a good basis for comparison between countries? In the world of Economics, GDP per capita is used to compare the way that countries are coping with different economic climates; such as recession, boom etc. This essay will be assessing whether GDP is the best statistic to use for comparing different countries’ economies. GDP is the most commonly used method by world famous economists to assess how successful an economy is. GDP stands for Gross Domestic Product and is the market value of the official goods that have been transferred in and out in a country over a certain period of time. GDP is a good method for comparing the national incomes of countries because it can be very accurate. This is especially the case when the GDP for a division is divided between the population of a country. This is a statistic called GDP per capita and is a lot more accurate at showing how wealthy a country is because it divides the value of the goods transferred in a country between the whole population. This is clearly a better way of measuring how wealthy a country is because it explains how rich each person is in a country. This is a better way of comparison between countries because it shows how rich the country is in terms of value per person instead of making assumptions. This makes a huge difference because in normal GDP, China is the richest country in the world because it is worth the most as a country;......

Words: 726 - Pages: 3

Premium Essay

Economics Comparison Essay Australia and China

...Australia and China have adopted different economic systems in order to cater for the society. The Chinese and Australian economies have many similarities and differences from Australia’s market based economy to China’s planned economy. Like all economies, they both face the problem of scarcity of resources, what to produce, how much to produce, who will produce. Both of these economies have adapted to changing the world in order to allow their economies to grow and develop. These similarities and differences include the economic growth and quality of life, the environment, employment and unemployment, distribution of income and the government role. Australia and China Australia have very little similarities in terms of economic growth and quality of life. Australia is a democracy and China is a one party rule socialist party. The quality of life also comes in the size and the population of the country. Australia’s area of 7,682, 300 sq km is 80% of China’s 9,595, 960 sq km, yet its population is 22 million which is only 1.7% of China’s 1.35 billion. For Australia’s GDP per capita is $43,000 ranking 10th in the world and China’s is only $7945 which is 98th in the world. Due to the extreme difference in the density of population and per capita income. Basically there isn't a lot of similarity except the large gap between rich and poor and for a few wealthy individuals who could afford the same luxuries. Employment and unemployment are one of the many similarities and......

Words: 642 - Pages: 3

Free Essay

Gdp Comparison of India and China

...Economic growth is measured in terms of an increase in the size of a nation's economy. A broad measure of an economy's size is its output. The most widely-used measure of economic output is the Gross Domestic Product (abbreviated GDP). GDP generally is defined as the market value of the goods and services produced by a country. One way to calculate a nation's GDP is to sum all expenditures in the country. This method is known as the expenditure approach and is described below. Alternative Approaches to Calculating GDP There are three approaches to calculating GDP: * Expenditure approach - described above; calculates the final spending on goods and services. * Product approach - calculates the market value of goods and services produced. * Income approach - sums the income received by all producers in the country. Expenditure Approach to Calculating GDP The expenditure approach calculates GDP by summing the four possible types of expenditures as follows: GDP    | =   | Consumption |   |  +  | Investment |   |  +  | Government Purchases |   |  +  | Net Exports | Consumption is the largest component of the GDP. In the U.S., the largest and most stable component of consumption is services. Consumption is calculated by adding durable and non-durable goods and services expenditures. It is unaffected by the estimated value of imported goods. Investment includes investment in fixed assets and increases in inventory. Government purchases are equal to the government......

Words: 1697 - Pages: 7

Premium Essay

Real Gdp vs. Nominal Gdp

...Real GDP vs. Nominal GDP Real GDP is GDP adjusted for changes in the price level and Nominal GDP is GDP expressed at current prices and it is often called money GDP (Gwarthney, pg. 732 & 734). Both the Real GDP and Nominal GDP are from the GDP deflator which is measurements of money and power that are the effects of inflation. The Real GDP is the measurements of significant of price changes and Nominal GDP is the measurements of inflation. We need both Real GDP and Nominal GDP because both plays important roles in the economics system and both are use to keep up with the comparison of years, prices, price index, and real GDP with percentage increases between of the area noted. In my first article, Wall Street Journal, it took place in Japan around the 2000 about the fourth quarter concern because instead of the prices rising they are progressively declining among other nations are excelling. I paid attention in the first 2 quarters real and nominal were the same but on the last two it change the nominal gdp became poorer then the real gdp. In which is bad because the products of goods and services determined the inflation and real growth in which is the numbers economics look for to increase because it’s the profit that counts. I suggest that Japan needed to reevaluate a plan to increase their products and sells so the inflation and real gdp and the nominal which is the money would increase in the world trade sells. My 2nd article of reality of today of 2014...

Words: 485 - Pages: 2

Premium Essay

Economic Comparison

...Why they are different? Introduction The economic status of a country is determined by various factors and various measures that are compared to other countries. The economic stability of countries is measured with consideration of various elements such as the general income of the citizens, and also the productivity of various groups and organizations in the nations. The economic contributions of economic institutions such as banks, private and public financial institutions are also used to determine the position of nations’ economic status. The index heritage scale is an essential parameter in determination of a country’s economic position in comparison with other nations across the world. The global economy ranking is therefore achieved after a comprehensive analysis of the economic positions of various countries, and this is with comparison of the pillars of the economy of the respective nations. Poverty, poor health and ignorance are considered to be the fundamental contributors of low index heritage scale due to their negative contributions towards the economy of a country. It is the responsibility of the government and key players in the economy of a country to ensure that the economic strategies and activities that they engage in positively help in eradication of poverty, reduction of ill health and control of unawareness among people and organizations. This paper aims at drawing a comprehensive and evidence-based comparison between Germany and Canada. This......

Words: 1870 - Pages: 8

Free Essay

Comparison on Economic Between Egypt and the Us

...Comparison on economic performance of Egypt and USA History/Background Egypt is the 29th biggest country in the world, covering a total area of 1,002,450 sq. km. It is a country in the Middle East which linked with the northeast Africa, on the Mediterranean Sea, at a crossroad between Africa, Asia and Europe. It is bordered to the east by the Red Sea, Palestine and Israel to the north-east, Libya to the west, and Sudan to the south. The country is divided into 4 main geological areas which is the Nile Valley and Delta, Western Desert, Eastern Desert, and Sinai Peninsula. On the other hand, United States is the 4th biggest country in the world. The U.S. is a country of 50 states covering a vast swath of North America, with Alaska in the extreme Northwest and Hawaii extending the nation’s presence into the Pacific Ocean. Major cities include New York, a global finance and culture center, and Washington, DC, the capital, both on the Atlantic Coast; Los Angeles, famed for filmmaking, on the Pacific Coast; and the Midwestern metropolis Chicago. Population The population of Egypt is estimated at 85 million as of October 2015. Egypt's population is equivalent to 1.16% of the total world population (7.3 billion people). Egypt ranks number 15 in the list of countries by population. While the total population in United States is estimated at 325.8 million people as of October 2015 and it represent 4.46% of the total world population which arguably means that one person...

Words: 852 - Pages: 4

Premium Essay

Economic Terms Comparison

...Economic Terms Comparison HCS 552 Economic Terms Comparison The economics of health care organizations and delivery is essentially the same as other services that employ principles of economics. The main goal is to make money from specific exchanges that take place in the business. Health care organizations provide a product which, hopefully, consumers want, and possibly need and the consumer is willing to exchange something of value for the product. How the organization determines the needs of the consumer is through the understanding of trends in the community. Specifically understanding the economic terms of utilization, supply and demand, variability, and third-party transactions will enable the organization to predict with some accuracy, the consumers health care needs. Utilization is a term to describe how consumer access or use a product. In health care utilization is used to help the health care organization understand what consumer health care trends are so that the organization can, with some accuracy, predict the necessary products of health care. Utilization and prices were out of control prior to the advent of diagnosis related groups (DRG) and managed care. Managed care helped to control some of the costs of health care by controlling the price of procedures and limiting utilization by the consumers. Increased access to or use of a particular item is may be beneficial in some business settings and through the use provides a better understand, which......

Words: 876 - Pages: 4

Premium Essay

Economic Comparison of South Korea and Japan

...of the results. My new predicting octopus “experiment” has the different chances for predicting each game. Because Paul the octopus only has 33% or 1/3 chance of predicting the winning team between the three options, we would just multiple another 33% or 1/3 to the previous game. For example, my new octopus would have 1/3 chance of predicting the first game, 1/9 chance of predicting the first two games, 1/27 chance of predicting the first three games, and more. In my version of the “experiment,” I would say the odds for my octopus successfully predicting the outcome of 6 games in a row would be 1/729. Analyzing Goldman Sach’s econimc prediction to random guessing (randomly guessing one of three outcomes), Comparing Goldman Sach’s economic team predicting 37.5 success rate for only 8 games and prediction of 37.5% success rate from 48 games, I would feel a stronger evidence from the 37.5% success rate from the 48 games because of the Law of Large Numbers. Based on the Law of Large Numbers, we can assume the assumption from the 48 games would be closer to the theoretical probability value of success rates than only 8 games. Also, I believe the increase in the sample size would correlate to the decrease in margin of error. If Paul the Octopus lived long enough to guess the outcomes of 48 games, I would predict the success rate would have been very very low. Besides Paul the Octopus, I thought of other examples of the prediction system like, weather forecast......

Words: 556 - Pages: 3

Premium Essay

What Is Economic Growth and How Do We Use Gdp?

...Glenda Stahl 03/13/16 Week Eight Homework What is economic growth and how do we use GDP to measure an economy? Economic growth is measured by the value of all the products manufactured and sold in a country over the course of one year along with everything people do and get paid for. There are four categories that create GDP: consumers, investments, governmental spending and other companies that buy from another country. GDP measures income, but not equality, it measures growth, but not destruction, and it ignores values like social cohesion and the environment. However, there are countries that are trying to include social cohesion and the environment because it does have an effect on economic growth. What cause or contribute to the growth of an economy? Economic growth is measured by real GDP growth where the ability of a country to increase the value if it’s production of goods and services after removing the effects of inflation. When people earn more money they buy more products which results in economic growth. Economic growth is important for a country because it leads to a better standard of living for all its citizens, even the poor. Countries with a good economy can offer better health care services, safer working conditions and spend more on insuring a cleaner environment. Also, economic growth allows countries to reinvest money into areas that will promote future growth such as education, technology, capital and infrastructure. What is the rule of 70?...

Words: 690 - Pages: 3

Thriller | arc536pro | Danish Krone