Macroeconomics

Macroeconomics is a branch of Economics that deals with the aggregates in the Economy. It specifically measures the economic activity of the country. In microeconomics, there are cyclical activities of of inflow and outflow brought about several participants, like households, and Firms.

We measure the aggregate or total output to determine if a country is improving economically and showing signs of economic growth.

Gross Domestic Product (GDP) is the summation of all goods and services produced in a specific country within a specific period of time. It does not include factor payments for abroad.

Measuring GDP

Value-added Approach or the Product approach is used primarily to measure GDP, which ensures that no double counting was done.

Double counting occurs when the value of final goods includes the value of the intermediate goods.

Stages of Production		Cost	Generated Cost	Value-added cost
Fisherman	Booking Client	Php0.00	Php1,500.00	Php1,500.00
Factory	cooks sardines	Php1,500.00	Php4,000.00	Php2,500.00
Cannery	Make canned goods	Php4,000.00	Php6,000.00	Php2,000.00
Total			Php11,500.00	Php6,000.00

The value-added approach measures GDP as follows:

GDP       = (Gross Value – added by agriculture)

                +(Gross Value – added by industry)

                + (Gross Value – added by Service Sector)

Year	Quarter	At current prices
		Agri	Industry	Service	GDP	Growth%
2016	Q1	Php334,063.21	Php1,019,670.53	Php1,914,191.37	Php3,267,925.11	–
	Q2	Php311,205.84	Php1,089,812.56	Php2,212,087.48	Php3,613,105.88	10.56%
	Q3	Php326,723.19	Php999,407.48	Php2,157,691.33	Php3,483,822.00	-3.58%
	Q4	Php426,070.64	Php1,343,216.40	Php2,345,804.58	Php4,115,091.62	18.12%
2017	Q1	Php364,095.35	Php1,108,322.58	Php2,098,310.38	Php3,570,728.32	-13.23%
	Q2	Php349,489.30	Php1,177,995.17	Php2,418,640.68	Php3,946,125.15	10.51%
	Q3	Php347,192.07	Php1,088,633.44	Php2,382,682.16	Php3,818,507.67	-3.23%
	Q4	Php465,877.59	Php1,438,448.32	Php2,566,671.78	Php4,470,997.68	17.09%
2018	Q1	Php395,690.70	Php1,224,765.09	Php2,294,143.96	Php3,914,599.75	-12.44%
	Q2	Php368,517.27	Php1,302,832.72	Php2,652,159.51	Php4,323,509.50	10.45%

Growth Rate is measured by:

Per Capita GNP (or GDP)

It measures the Country’s growth by dividing the National income (GNP/GDP) with the number of members in a population.

Gross National Product

Is the measure of all the final goods within a country in a specific time period including the earning abroad. In the formula for GNP, the Net Factor Income (NFY) from outside the Philippines may be positive or Negative. It is also the difference between GNP and GDP.