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The national saving is the part of the GDP which is not consumed or spent by the government. Y − C − G = S = I + N X {\displaystyle Y-C-G=S=I+NX} Therefore the difference between the national saving and the investment is equal to the net exports:
Here, we define S as National savings (= savings of private sector + savings of government) and rewrite the identity as following: = This identity implies that the difference of national savings and national investment is equal to current account. [2] [3] [4]
Gross domestic product (GDP) is a monetary measure of the market value [1] of all the final goods and services produced and rendered in a specific time period by a country [2] or countries. [3] [4] [5] GDP is often used to measure the economic health of a country or region. [2]
This is a list of countries by gross national savings. Gross national saving is derived by deducting final consumption expenditure from Gross national disposable income, and consists of personal saving, plus business saving, plus government saving, but excludes foreign saving. The figures are presented as a percent of GDP.
I = GDP − C − G − NX ). "Net investment" deducts depreciation from gross investment. Net fixed investment is the value of the net increase in the capital stock per year. Fixed investment, as expenditure over a period of time (e.g., "per year"), is not capital but rather leads to changes in the amount of capital.
Gross domestic product (GDP) is defined as "the value of all final goods and services produced in a country in 1 year". [3] Gross national product (GNP) is defined as "the market value of all goods and services produced in one year by labour and property supplied by the residents of a country." [4]
In the general equilibrium model savings must equal investment for the economy to clear. [2] The economy grows as division of labor increases productivity of laborers. This increased productivity in laborers creates a surplus that will be split between capitalists’ expenditure on goods for themselves and investment in other capital. [ 5 ]
GDP (Gross Domestic Product) is the value of all goods and services produced within a country during one year. GDP measures flows rather than stocks (example: the public deficit is a flow, measured per unit of time, while the government debt is a stock, an accumulation). GDP can be expressed equivalently in terms of production or the types of ...