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.

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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:

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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.

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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.

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