What is Gross Domestic Product (GDP)?

[@ArushaMediaTV]

you guys are far better than my lecturer

[@AjayPatel-so8zs]

Maybe you're just dumb bro

[@AlexESR71]

@@AjayPatel-so8zs First of all, becoming a lecturer requires you to know how to keep an audience intrigued. Second, most people just go to work to pay the bills, without love or real interest for what they do. They'll usually just do the bare minimum to make it to pay day. He's not alone on the fact that many youtubers make far better teachers than actual "teachers".

[@anntran3814]

my lecturer uses this video to teach us about GDP 🤷💯💯💯

[@PushPastMyLimits]

I don’t even have a lecturer, doing it online :|

[@AaronAmandaTsoi]

kzbin.info/www/bejne/qHK4oHpjZsmBnaM&si=beRqNw5ANDr0rZEz

[@shamnahusman6175]

One big hug to you guys for making these videos and helping neophytes like me to try and understand economics. Thank you

[@MarginalRevolutionUniversity]

Thank you Shamnah! Good luck to you! Econ gets a bad rap. It's fascinating once you dig in. That is, if you like understanding human behavior and the consequences! Best, Roman

[@jreynolds8079]

Shamnah Usman

[@feynstein1004]

@Myrrg Greenwich from Google, neophyte = a person who is new to a subject or activity.

[@faizansayed3670]

Thanks shamnah, I learned a new word because of you. '' NEOPHYTES''

[@johnabraham8520]

Faizan Sayed word?

[@ayushibaloni3631]

These guys have really made good efforts to make Economics interactive.

[@jacksonrowan2038]

This explanation is so broken down, clear and easy to understand and the analogies were spot on. Maybe of this guy was my 12th grade econ teacher, I wouldent have failed with a 58.

[@aliciajolley519]

Economics is incredibly hard to understand, but this video gave me so much information in such an easy way! Thank you!

[@charisjosh6743]

Honestly you guys are better than my lecturer. I understand this way better now. Thank you

[@georgeb8637]

0:23 - market value of all finished goods and services produced and sold in a year 0:49 - GDP = all the sold goods or services 1:06 We don’t count goods that baker buys in GDP - because those products will go into a finished product that will get sold 1:32 To calculate GDP - we seem to only add up goods sold to consumers (not businesses) 2:17 - if an old house is sold this year - but not produced this year - it does not count towards GDP 2:39 - imports add to countries GDP - so if you buy bottle of wine from France, the sale counts towards France’s GDP

[@axnnaandmikeyplayz5044]

Thanks man for making this I respect for your work for making timeline

[@noel7777noel]

Money making money is not supposed to be counted as GDP. This is what the Glass-Steagall Act was for. "Earning" interest rates is counted as GDP. [After the Glass-Steagall Act was repealed]. A business loan is counted as a business expense. Say if our banks have 75% unsecured bonds on the books. AKA ponzi scheme. That would include GDP. Home flipping is GDP. Now. If this financial ponzi scheme "GDP" stops. The world goes into a resection. Not that building real products ever stopped. Like a stock can go up but the company never sold more products. Yes. Ponzi schemes count as GDP. This is why if the financial system colaspes, it takes the real products with it. This is the Glass-Steagall Act.

[@StanDubin]

using your example, how do the folks calculating GDP know if the eggs were purchased and consumed versus the eggs being purchased to make a finished product?

[@eduardd.1086]

@@sanctumsomega how does that work exactly? i'm assuming smaller societies buy big quantities of products from bigger societies on a special market, but i might be wrong. can you explain?

[@craigistheman101]

Cristea Andrei usually Restaurants buy directly from a distributor or farm instead of through a supermarket

[@enderlinde3152]

@@eduardd.1086 one before one after I guess

[@josephdavis1704]

"economics for middle schoolers" meanwhile 99% of American adults: "GDP? is that something to do with climate change? is that a food additive?"

[@pepbtw]

Clear explanation in layman terms with very simple example. Educational institutions need more teachers like you.

[@MTCTryder]

1.5 hours of boring class in 4.5 minutes in a fine and good peace video. Thanks for making this (:

[@dilansankalpa1019]

I love these videos. It is very easy to understand and very informative. You are making a huge contribution to this world!

[@MarginalRevolutionUniversity]

Much appreciated! -Roman

[@digvijayjoshideejay_live2i811]

Firstly, i wanna thank u for explaining these concepts in a very simplest manner...!!! Now my question is with respect to finished good and intermediate goods..... As you have mentioned if a bakery buys eggs it will not be counted, but if a consumer buys it, it will be counted, so how does the supermarket come to know purpose of buying or i would say how would they come to know if its for commercial use or domestic?

[@spartan187]

Through store channel i guess, if a retail store is selling than most likely it is for end consumer But if a distributor( distributor are not manufacture) is selling that it will be mostly likely to retailer like super or hyper markets and so on. In Bakery owner product will be on deliverable or reselling. As long as complete Product is delivered to consumer it will be considered. this is my assumption only. so GDP data is collected from 2 points 1 Manufacture 2. point of sales.

[@shardulkulkarni3999]

@@spartan187 So, would you count cement in the GDP or not ? Cause cement industry is a huge industry but house/building is the finished good here and hence only houses should be counted in the GDP. Wouldn't adding up the numbers of cement industry give an idea of real estate of the country ? Cause counting number of NEW BUILDINGS is a quite a difficult task but as cement industry is dominated by only 3-4 companies here in India, wouldn't it be easy to add up their financials to get an estimate?

[@otm777]

I had the same question! What if a baker (or restaurant owner) buys products from a supermarket which are then used in their business to produce a finished good. Seems like the individual products, albeit small in value, would be counted as a finished good at supermarket level and then counted "again" as a finished good at the business level. This example probably doesn't have a "major" effect on GDP, but it's clear GDP is not a perfect number, more like a good estimate of market value.

[@lisandrobarchiesi3008]

Thanks to this video I could answer the classic "are polar bears counted in GDP?" exam question

[@TheImmukhan]

great video !! presentation and animation made it so easy to understand the GDP !! thanks for uploading

[@AsianBoiGallore]

It amazes me how this 4 minute video covers over 50 pages of my college text book, and I understand the subject more though this video.

[@ThormanBoucher]

People rarely talk about the mindset, internal strategy and emotional perseverance that is involved with financial freedom. It's something I feel like we struggle with as humans because how fast our life moves which makes it so important to be reminded that if we get our mind right and set a goal we can achieve. I own 3 rental properties, I started my own business and my net worth increased by $830,000 in 4 years

[@CristianHulbert]

@Anderson Varley WOW!!!. I will be retiring early and i want to grow my $380k . Please who helped you and how can I count on him/her?

[@RachelBrinkmeier]

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[@velayuthman]

@Anderson Varley I searched for Katherine using her full name and found her webpage, read her resume, education, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I sent a message and I hope she replies soon

[@noel7777noel]

#FBI "financial freedom" is literally banking fraud criminals to avoid work. This is what the Glass-Steagall Act was for. Money making money is not GDP.

[@nik4546]

An absolutely brilliant explanation! Thank you.

[@alparslankorkmaz2964]

Nicely explained.

[@commentscorner617]

Simple, clear and to the point, What's not to love

[@rondickey7116]

Very well explained, I've learned more economics from ur 4mins video, than wht I've read...ty

[@dalurinzinia829]

this video explains everything so clearly and in a simple-to-understand manner, thank u so much for making this video !!

[@TRENDVFY]

6yrs ago and still better explanation than CNBC

[@domoso2794]

thank god! this is even better than spending an hour on a GDP lecture

[@YourMum44056]

Holy crap, I've searched and searched. This video was all I needed.

[@Mohdzn]

Wow, after watching many videos this one really helped me out

[@farzadsole6021]

Thank you so much for this useful and informative video, keep up the good work guys :) Many thanks Greeting from Iran ❤ Cheers

[@kennytheclown3859]

Interesting. Very concise.

[@wyattblah]

Thank you for a straightforward video.

[@ashirjawad347]

I just love this channel ❤️

[@alltimechiller]

Very well explained. Easy to understand. Subscribed!

[@beboysub]

Thank You

[@noumanahmed1017]

Keep up the good work brother.

[@guilhermeadan2329]

very good production/editing as well

[@abdulrahmannawaf9120]

really nice video presentation, simple & easy. Thank you !

[@mrsshaukat9669]

This vid is about nominal gdp( gross domestic product ) Nominal gdp: market value of finished goods and services produced within a country in a year. Finished goods : goods that won't be sold again as part of another good * Finished goods are sold directly to comsumers * Finished goods are counted in gdp Eg eggs sold to consumer ( to eat) Intermediate goods : a good that when sold becomes part of another good * Intermediate goods are combined to make finished goods * Intermediate goods are sold to business and manufacturers, etc . * Intermediate goods are not counted in gdp. Eg eggs sold to bakeries ( to make cake) Capital goods : goods that are used to make other goods though they dont become part of another good * These are counted in gdp Eg tractor used to produce crop Produced in a year : Gdp of a particular year doesnt include goods produced in otger years Eg an old house built in a previous year but sold this year is not counted in gdp of this year . A house produced and sold this year is counted in gdp Produced in a country : Gdp of a country doesnt include goods that are sold in the country but were produced in another * French wine sold in usa contributes to France's gdp * USA's tech sold in france contributes to USA's gdp * Exports are counted in a country's gdp and imorts aren't Market value : Goods not sold in a market arent counted in gdp because there is no set value of such goods and this can create problems in computation as diff statisticians will come up with diff numbers for gdp . Real Gdp can show standard of living(next)

[@nandanassudheer1517]

Crystal Clear explanation

[@camillewilliams8133]

Thank you for all these wonderful videos as i not only ace my exam , i understand the concepts economics and apply them in my everyday life .. Thanks a million.

[@Amad3u1]

Great video clear and concise explanation.

[@stuffhappens7152]

It is also measured quarterly to see where we are in the economic cycle. Two consecutive quarters of negative (falling) GDP indicates a technical recession.

[@krishnachaitanya7435]

Crystal Clear video ... Thank you for this video 👍

[@ashishaheen4454]

Waaaw I like ur vedios so easy thanks thanks sir🥰👍👍

[@Intothemarket101]

Thank you so much for sharing this useful data! Greatly appreciated.

[@gillian5871]

Thanks for the clear explanation of GDP

[@yashvikudrigikar8943]

Thank you for such detailed explanation

[@wilbcn]

the video starts saying goods and services produced, then goods and services sold and then again goods and services produced. It's not the same...my question is, if GDP measures goods and services produced (not sold), which information do statisticians gather in order to calculate GDP? Companies' sales +/- inventory variation?

[@yeezy3590]

Learnt more from this than my teacher thanks

[@Telling_yuhmusic]

Good teaching 👍

[@VanessaGraulich]

Excellent Video !! I use it for my Instagram tutorials. Incredible channel

[@premangsupal1077]

Awesome video

[@jashuar]

This is amazing holy cow

[@MarginalRevolutionUniversity]

Thank you! -Roman

[@maearianboter6052]

thank you and God Bless! and asking for permission to use the information for our tasks in school.

[@Shona_thecatalyst]

wow thanks for making this so easy to understand! i get it now. subscribed and looking to watch more videos

[@alexkunovac9479]

Awesome video keep it up

[@danielrizzo4927]

Excellent!

[@youraliensister9642]

Love these videos

[@ararin04]

YOU SAVED MY LIFE

[@ChaiTabunaway]

well explained!

[@mooncrystalrose]

Very informative 👍

[@yili5055]

What does it mean when a news report says some percent of a country's GDP is debt? Does it mean this many finished goods are produced from borrowed money?

[@sakeshkhaira3995]

You really explain good with better example it really makes easy to understand me thanks.😀

[@phiaowo3999]

Excellent!!!!!

[@zac7187]

Does that mean If i own a tyre company and i have two distribution channel, car manufacture and the wholesale, then only the latter one will be account for the GDP calculation?

[@romeshkirpalani848]

Very useful❤

[@shammaalali352]

so for ex. if we plot the products prices we don't plot the egg and flour and butter we just write cake?

[@ParallelComparison]

How would you determine if the eggs bought are for making cakes or consuming?

[@jackiechan3509]

What are taxes or federal taxes do banks give out money for paying taxes throughout the year or do banks have interest rates???

[@Discovery_and_Change]

So GDP only counts what's sold? If we produce 10 million computers but only sell 1 million, we only count 1 million? Also, if reports say 3rd quarter GDP rose by +3%, is that in comparison to previous quarter or to previous year's 3rd quarter?

[@TimePass-jh2ew]

மிக அருமை....!!!

[@carlettagoodrichmann1513]

Informative and the stock market evaluates the supply and demands of the nations productivity from generation to generation .

[@archiveeverything3000]

2:38 so if a computer made in usa & exported to france for $1500, are we adding 1500 in USA GDP OR the price France sold it for to their consumer (lets say $2000?)

[@krishnaalways]

looking for answer.

[@ThatoFX]

Is your macroeconomics course organized in order?

[@sinseven6035]

awesome video

[@havenlamarche4682]

Awesome explanation

[@believeinyourself299]

But why we need or calculating gdp?

[@daylightriot5671]

Would be handy to mention that this is the output measure method of calculating GDP. Great video though, examples were relevant and on point.

[@gabrielgabro4755]

Realy nice....thank you for your efforts

[@yylee1360]

EASY TO UNDERSTAND THANKS

[@techtree1555]

way better than my university lecturer. In my university lecture even the front row is sleeping.

[@andivlogs]

So helpful, thank you! 😊

[@asmanusairi1308]

I loved the videos, thank you alot !!

[@shardulkulkarni3999]

So, would you count cement in the GDP or not ? Cause cement industry is a huge industry but house/building is the finished good here and hence only houses should be counted in the GDP. Wouldn't adding up the numbers of cement industry give an idea of real estate of the country ? Cause counting number of NEW BUILDINGS is a quite a difficult task but as cement industry is dominated by only 3-4 companies here in India, wouldn't it be easy to add up their financials to get an estimate? Also, What do you do about various schemes, subsidies and stimuli given by the government ? Do you add them while counting the GDP or not ?

[@lastchance5444]

Question🙋🏻‍♀️ what if it was a house produced in 2020 but sold for the first time in 2022. Would it be included in the GDP of 2022 or 2020?

[@PaolaSanchez-hc5my]

Bravisimo! Thank you!

[@khannnnnn1471]

Excellent

[@kinzahamiz6270]

Amazing explanation

[@nimitgoyal]

If a product (for ex a car) is manufactured by an automobile company but not sold. Will it add in GDP for that year? Second question, car was manufactured in 2019 (for example) but sold in 2020. Would it be part of 2019 or 2020?

[@statsuniverse155]

GDP is really interesting ! I like these stattistics.

[@samuelmachiridza9643]

Thanks for this video now I can understand better

[@isamekailmahmud9302]

so an intermidiate good is a good used to make and is a part of a finished good

[@ajayvishwakarma6553]

Thanks sir giving this great information with great presentation

[@rinawidi6734]

Thank you so muchhh i love this video

[@johnnydoe2672]

Good time to learn how terrible the US economy is right now. Thanks for the great video!

[@rohanchoudhary1050]

What an awesom video

[@4edu468]

hello sir when a producer of a cake buy egg from producer of egg do we count it into GDP?

[@TheZirodent]

Excellent video. I have a question, if mac computer is made in China, is it part of Chinese or US GDP?

[@edfleurs]

Finally someone with a good English, other channels are Indians speaking english

[@Ram-fi9dt]

Do the goods have to be necessary sold to be counted in GDP, even without being sold the goods retain its MARKET VALUE right? So imagine a country produces lots of goods and never sells it, will that be counted in GDP, how does that go about? Anyone willing to clarify?

[@NurulHidayah-nw9gz]

i want to ask the same question!

[@dcoin1793]

What's the point of producing a lot of goods when nobody buys them. Only idiot company will do that. No demand = no production.

[@ravenousclouds_]

My teacher in economics told us that eventhough it wasn't sold but it was produced in a year then it is part of the GDP.

[@aman4580]

What is the gdp per capita means?

[@VINNUSAURUS]

how does government know if a good or service is finished ?

[@mel816]

If I'm not mistaken, this is usually through tax reports of businesses

[@郭栋-h1u]

Tax reports, so finished goods traded in black market don’t count

[@phataphiwatanakoon7613]

Value added approach. It takes into account the difference in values of products before and after an operation/production. The good may not be 'finished', but the counting done after that period is only based on the value added after that 'unfinished' product.

[@indomilitary4541]

@@郭栋-h1u how about small bussinesses? as far as i know these dont have much details about their sale

[@matthewhemmings2464]

Kaguya haduh Onless they want the visit of the tax inspectors (IRS, CRA, etc.) they better keep their accounts up to date.