Calculating National Income and Gross Domestic Product (GDP)

Calculating National Income and unwashed Domestic merchandise (gross domestic reaping)1.0 Introduction of labor movement 1In task 1, this task argon nearly the economy of Europe and Japan grow rapidly, this provide increase growth of real thoroughgoing(a) Domestic Product (GDP) in the unify States. The three commonwealth have their own market. Japan is free market and the economy of the United States is the worlds biggest single national economy.1.1 Economy of JapanJapans industrialized and free-market economy. Japan is the third-largest kingdom in the world. Japan economy is the highly efficient and competitive in areas linked to international softwood, but productionivity is lower and far in protected areas much(prenominal) as distribution,agriculture and services. Japan have both(prenominal) natural resources, and trade helps Japan to earn the foreign exchange needed to purchase the raw materials for its economy. As the ecumenical demand for its goods tumbled, the B ank of Japan reported the real GDP growth of -5.5% in the final class of 2009. Japan recovered the slightly in year 2010 and reported the real GDP growth of 4.4 percent.1.2 Economy of Japan United States (US) of GDPWhen the US economy slowdown or rebound, the comparisons to Japan seem to follow. though the comparisons are debated, there has one idea which isnt is the idea that Japan has had a lost decade. The main data for supporting this is the Nikkei, which still hasnt returned to its 1990 peaks and Japanese GDP which has grown at a down pace for decades. Its debatable whether an equity of average moving from extreme overestimate the territory to more reasonable valuations is a reflection of a stagnant economy. Whats not quite as debatable though is that growth of GDP has lagged the US. To continue appendix 1 .1.3 Economy of EuropeThe European Economy since 1945 is a convenience, broad and frank account of the extraordinary development of Europes economy since the end of inno vation War II. Barry Eichengreen is an Ameri put forward economist. He argues that the continents of history has been critical to its economic performance, and that it result be continue to so going forward.Economic growth was the facilitated by unite-centered trade unions, cohesiveness of employers associations, and growth minded of governments for all legacies of Europes earlier history. For example, these institutions worked together to mobilize savings, finance investment, and stabilize wages.1.4 Economy of Europe United States (US) of GDPAccording to earlywarn (Stuart Staniford, 2012) showed that the chart about US and Europe real GDP of year 2007. Eurostat came out with the 4 number for GDP and, expected given the data stream of contractionary spirit data out of the Europe lately. It showed a moderate of (0.3%) drop over the prior describe. It was the contrast for two and it to the rather stronger for US data. The level of real GDP for both economies with both normalize d to set Q4 of year 2007 to 100. The data are from Eurostat and the BEA. To refer appendix 2.1.5 GDP of United States (US) The economy of the United States is the worlds biggest single national economy. The United States is a mixed economy and has maintained a stable overall of GDP growth rate,a moderate unemployment rate, and the high levels of research and capital investment. Its have five-spot largest trading partners are Canada, China, Japan, Mexico and Germany.According to UsaToday (Pual Davidson, 2014) showed that he nations gross domestic product in the last three months of year 2013 increased at a 2.6% one-year rate, up from the previous estimate of 2.4percent. Thats the governments third and final estimate of fourth-quarter of growth.The economy of US grew more briskly than the government previously estimated in the fourth quarter on stronger consumer of spending, among other factors. To refer appendix 3.1.6 Conclusion of Task 1In the conclusion of task 1, Europe and Japa n both also will affect the US GDP. When the US economy slowdown or rebound, comparisons to Japan seem to follow. Europe and US GDP both are contrast for both and it to the rather stronger US data.The level of real GDP for both economies with both normalized.2.0 Introduction of Task 2In task 2 have A and B question. Question A are about the problem encounterd in calculating the national income. Question B are about the table of landed estate Xanadu for year 2012.2.1 Task 2 (A) The Problems of Calculating the National Income.Accordig to Fahim Patel, the Content Manager of guesspapers.net showed that the problems will faced while calculating the national income.There have some of the problems and the difficulties that are usually faced while calculating the national income are as follows. When calculating the national income, there is that what should be include and what excluded with the respect to the services and product produced. This is one of the greatest difficulties of calcula ting the national income.Next problem is the calculation of the depreciation. The main cause of behind it is that because of both the amount and the composition of jour capital will change from time to time. There are no standard and concept rules of depreciation that can be applied. When depreciation is an estimate of correct deduction can be made until or unless these accurate depreciation estimates are not deducted from the estimate of net national product the net national income is bound to false.In addition to, the treatment of the government also is the problem while calculating the national income. Government will have some expenditures such as the defiance and administration expenditure, social welfare expenditure, payment of interest on national debts and the miscellaneous development expenditure. The reality problem that is faced relates to which of the above should be included in the national income.Another problem is the income from foreign firms. This is the major probl em of relates to the fact that are weather the income arising from the activities of the foreign firms operating in a country should be included in the countries national income or not. Besides, repeat counting also is the problem. The proper of care is required for calculating national income so that double counting may not take place. This problem usually will occur in those countries where proper the documentation or statistics are unavailable.Lastly is the care for of inventories. It is not easy to calculate the value of raw materials, semi finished the product and finished the goods in the custody of producers there fore it creates some problems.2.2 Task 2 (B) The Table of Calculate from Country Xanadu 2012FormulaAnswer (RM)Gross Domestic Product at Market PricePrivate consumption expenditures + Gross investment +Government consumption expenditure + (Exports Imports)900 + 1000 + 800 + (2000 1000) =3700Gross Market Price at Market PriceGross Domestic Price at Factor CostGro ss Domestic at Market Price + Subsidy Indirect taxation3700 + 200 500 = 3400Net National Product at Factor CostGross Domestic Price at Factor Cost + (Exports Imports) Depreciation3400 + (2000+ 1000) 200= 4200Net National Output at Market PriceGross Domestic at Market Price + Net factor income from foreign countries Depreciation3700 + 900 200 = 4400The Net InvestmentGross Investment Depreciation1000 200 = 800Corporate Profit2.3 Conclusion of Task 2In the conclusion of task 2, there have some problem will occur when calculating the national income. We have to avoid the the problem recurs again by more practice of the calculating the national income.ReferencesStaniford, S. (2012). premature Warning US vs EU GDP Growth. online Earlywarn.blogspot.com. Available at http//earlywarn.blogspot.com/2012/02/us-vs-eu-gdp-growth.htmlPatel, F. (2014). Difficulties Faced while Calculating National Income guesspapers.net. online Guesspapers.net. Available at http//www.guesspapers.net/1337 /difficulties-faced-while-calculating-national-income/Statista, (2014).United States Gross domestic product (GDP) growth rate 2014 Statistic. online Available at http//www.statista.com/statistics/263614/gross-domestic-product-gdp-growth-rate-in-the-united-states/Murakami, Y., Patrick, H. and Yamamura, K. (1987). The Political economy of Japan. foremost ed. Stanford, Calif. Stanford University Press.Neal, L. (2007). The economics of Europe and the European Union. 1st ed. Cambridge Cambridge University Press.Stone, R. and Stone, G. (1962). National income and expenditure. 1st ed. Chicago musculus quadriceps femoris Books.Hiroyuki, O. (1992). Growth through Competition, Competition through Growth Strategic Management and the Economy in Japan. 1st ed. ebook Oxford, GBR Clarendon Press, p.203. Available at http//library.olympia.edu.my2051/lib/olympia/docDetail.action?docID=10274571p00=japan%20economyKemal, S. (2009). bar the Economy GDP and NIPAs. 1st ed. ebook New York, NY, USA N ova, p.15. Available at http//library.olympia.edu.my2051/lib/olympia/docDetail.action?docID=10671149p00=united%20states%20gdpSteve, V. (2001). U.S. and Japan Relations in a Changing World. 1st ed. ebook Washington, DC, USA Brookings Institution Press, p.262. Available at http//library.olympia.edu.my2051/lib/olympia/docDetail.action?docID=10026222p00=japan%20united%20statesAppendixAppendix 1Appendix 2