Why do we need to know GDP❓
Why do we need to know GDP❓
GDP (Gross Domestic Product) is the counting of income generated in Thailand or goods produced in Thailand and traded in Thailand until it becomes income. It is there to tell the economic growth in the country. It also allows us to solve problems more accurately as well.
by counting the income generated by this It is not specified that only true Thai people like us are counted. but also to tourists or foreigners residing in Thailand or other nationalities It also counts as one of the GDP segments.
🔹Calculation method
Productivity - Include added value and use the economy as a measure of the value of goods.
part of expenditure - total from 1 year period, including household expenses purchase of goods, services
Revenue segment - total income from various locations possessed during a period
The GDP figure consists of C+I+G+(X-M).
C = Consumption or general everyday life Whether food, travel expenses
I = Investment or private expenditure in facilitating and improving such as construction of pedestrian roads, electric trains
G = Government Spending or government spending on investments in accordance with the policy
X = Export or exporting products to foreign countries
M = Import or import Receive goods and services from foreign countries into the country
The reason the equation is (X-M) is because subtraction is to find the value of the net output. Or it can be easily compared that income-expenses = net income. The positive-negative portion of GDP depends on the overall economy and working capital in the country. But if there is too much, it can cause inflation.
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