Calculating National Income and Gross Domestic Product (GDP)

scheming issue Income and Gross Domestic result ( make domestic product)1.0 conception of Task 1In trade union movement 1, this task be about the prudence of atomic number 63 and japan grow rapidly, this will increase evolution of authoritative Gross Domestic Product (GDP) in the United States. The deuce-ace country direct their own market. japan is free market and the economy of the United States is the worlds biggest single subject economy.1.1 providence of JapanJapans industrialized and free-market economy. Japan is the ternary-largest country in the world. Japan economy is the highly efficient and competitory in areas linked to inter interior(a) trade, but productivity is lower and farthermost in protected areas such as distribution,agriculture and services. Japan have virtually natural resources, and trade helps Japan to earn the foreign exchange indispensable to purchase the raw materials for its economy. As the worldwide demand for its goods tumbled, the Ban k of Japan reported the real GDP harvesting of -5.5% in the final family of two hundred9. Japan recovered the slightly in year 2010 and reported the real GDP harvest-home 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 info for supporting this is the Nikkei, which still hasnt returned to its 1990 peaks and Japanese GDP which has grown at a down measure for decades. Its deba postpone whether an equity of average moving from extreme overappraisal 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 hit appendix 1 .1.3 Economy of EuropeThe European Economy since 1945 is a convenience, broad and frank account of the extraordinary developing of Europes econom y since the end of World War II. Barry Eichengreen is an American economist. He argues that the continents of bill has been critical to its economic performance, and that it will be continue to so deviation forward.Economic growth was the facilitated by unite-centered trade unions, cohesiveness of employers associations, and growth tending(p) of governances for all legacies of Europes earlier history. For example, these institutions worked together to mobilize savings, finance enthronization, and stabilize wages.1.4 Economy of Europe United States (US) of GDPAccording to earlywarn (Stuart Staniford, 2012) showed that the graph about US and Europe real GDP of year cc7. Eurostat came out with the 4 design for GDP and, expected given the data stream of contractionary looking data out of the Europe lately. It showed a moderate of (0.3%) drop over the antecedent quarter. It was the contrast for both and it to the quite an stronger for US data. The level of real GDP for both eco nomies with both normalized to set Q4 of year 2007 to 100. The data are from Eurostat and the BEA. To extend to appendix 2.1.5 GDP of United States (US) The economy of the United States is the worlds biggest single interior(a) economy. The United States is a mixed economy and has maintained a enduring overall of GDP growth rate,a moderate unemployment rate, and the high levels of research and not bad(p) investment. Its have five 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 change magnitude at a 2.6% annual 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 closure of task 1, Europe and Japan 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 portal of Task 2In task 2 have A and B question. Question A are about the problem encounterd in figure the bailiwick income. Question B are about the table of Country Xanadu for year 2012.2.1 Task 2 (A) The Problems of Calculating the subject field Income.Accordig to Fahim Patel, the study Manager of guesspapers. shekels showed that the problems will faced while calculating the national income. on that point 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 i s one of the greatest difficulties of calculating 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 make 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 amplification 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 study problem 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, double counting also is the problem. The proper of care is required for calculating national income so that double counting may not hit the books place. This problem usually will continue in those countries where proper the funding or statistics are unavailable.Lastly is the value of inventories. It is not easy to point 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 display board of Calculate from Country Xanadu 2012FormulaAnswer (RM)Gross Domestic Product at Market costPrivate consumption expenditures + Gross investment +Government consumption expenditure + (Exports Imports)900 + 1000 + 800 + (2000 1000) =3700Gross Mark et value at Market priceGross Domestic Price at Factor CostGross 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). Early Warning US vs EU GDP Growth. online Earlywarn.blogspot.com. useable at http//earlywarn.blogspot.com/2012/02/us-vs-eu-gdp-growth.htmlPatel, F. (2014). Difficulties Faced while Calculating National Income guesspapers.net. online Gue sspapers.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. 1st 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 quadrangle Books.Hiroyuki, O. (1992). Growth through Competition, Competition through Growth Strategic centering and the Economy in Japan. 1st ed. ebook Oxford, GBR Clarendon Press, p.203. Available at http//library.capital of Washington.edu.my2051/lib/olympia/docDetail.action?docID=10274571p00=japan%20economyKemal, S. (2009). Measuring the Eco nomy GDP and NIPAs. 1st ed. ebook New York, NY, USA Nova, 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