Productivity, as well as the levels of wealth that a country can promote, will be positive or negative indications as the case may be, of the levels of stability, development and even quality of life of its inhabitants, always taking into account the importance it represents. money for the lives of individuals, their environment and even the society itself where their life takes place.
The GDP will become the great meter or reference point for the eyes of those who have the desire to invest in a location, here is the importance of its elevation, in addition its negative variation will be in unison a reference of instability that is reflected in the prices and costs of services and products motivated by other agents, for which the differences between GDP and the CPI must be understood .
GDP, what is it about?
In simple and general measures, we will define GDP as an indicator and in turn as a monetary value, represented on goods and services , which will be the final elements of economic production within a set interval. The composition of its name lies in its symbolism, where Product makes direct and elemental reference to added value.
The internal refers to the fact that productivity within the geographical space will be the measure, that is, within the borders. The gross is cited as the non-accounting of the variations in the inventories, added to the capital appreciations or their depreciations.
It is necessary to remember that GDP is understood as the sum total of component numbers, that is, an aggregate. Its measurement will also be heterogeneous, where its mean units are contained to obtain a totalized value. To achieve this, it will be necessary to give monetary values to services and goods in all their variability.
We can also refer that the GDP, by default, will be the result of a series of multiplications, where colossal factors are grouped in two aspects. That of the real elements and another subject to the monetary .
Similarly, the productivity of a country, even though it does not enter the equation to calculate GDP . Not surprisingly, increased productivity influences GDP directly. For this reason, the most productive countries are those with a higher GDP. And to stay that way they have to keep their economy growing.
GDP, what is it for?
As GDP is a basic indicator in the field of economics, it will help us directly to know the proportion of wealth that a nation generates, coupled with the dimension it covers and its composition, seen from the economic perspective. It will measure us after adding the production generated within a geographic space . Or in simpler terms, it reflects a measure of monetary value, of total goods and final services.
The data produced are generally annual or quarterly. Reflected in dollars, by international practice although for local use, it is reflected in the local currency . This will allow the comparison of values between nations, in addition to the use given by the States to reflect the dimensions of well-being within their countries.
Assuming the valuation by means of this indicator, of the importance of human resources and their dynamics within the private and state business community .
How is real gross domestic product calculated or measured?
The real GDP or constant prices, will therefore be the monetary value of total goods and services, produced in an economy with constant prices.
For which, based on the prices of the period, which is generally annual and based on their comparisons. Its fundamental objective is the calculation of production of the economy , as well as its evolution during the time interval.
Therefore, the so-called price rise effect must be eliminated for the calculation of GDP. Under this regime, the real GDP will multiply what is produced in goods by constant prices. To do this, production is calculated taking into account the GDP deflator , under the inflationary index, for the effective comparison between the rise in prices and not taking into account the rise in interest in the media production apparatus and its intertwined relationship with the inflation.
