The impact that changes in real gdp?
in the logging industry
Answer:
Fun question! I assume this regards Canada and the USA. In other words, how much lumber could the US buy from Canada in the past (like a year like 1950 versus today)? Real GDP (or Gross Domestic Product) is based on how many goods in a certain basket (like lumber) a person could buy in the past for a certain price versus the amount they could buy for the same price today. In other words, real GDP is based on an adjusted price index that takes out inflation in order to compare prices and amounts of goods in a realistic way. I like White Spot for instance. Back in the 1950s you could buy a hamburger for something like 50 cents. Today, you can use a multiplier like the current price divided by 6 times to measure this and result in a 50 cent burger in real terms that compares to what you could buy back in 1950. Say you could buy a log for $100 in 1950, and it cost you $600 today, then you know that real GDP from logging is still the same by dividing it by 6. However, if it cost you more than $600 today, you know that you are getting less logs for the amount that you paid in 1950 so you are getting less value for what you are paying for and real GDP for logs is going down! What impacts this? Tariffs, interest rates, subsidies, exchange rates, government policies, and so on! As far as I know, the largest impact on the real GDP of the logging industry right now is Canadian and US lumber industry tariffs. Because of tariffs and other factors within this particular industry, the real GDP of the Canadian lumber industry may be less than in 1950 because Americans are willing to pay less for the same amount of lumber (when excluding inflation and variables that affect inflation) than back then.
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Answer:
Fun question! I assume this regards Canada and the USA. In other words, how much lumber could the US buy from Canada in the past (like a year like 1950 versus today)? Real GDP (or Gross Domestic Product) is based on how many goods in a certain basket (like lumber) a person could buy in the past for a certain price versus the amount they could buy for the same price today. In other words, real GDP is based on an adjusted price index that takes out inflation in order to compare prices and amounts of goods in a realistic way. I like White Spot for instance. Back in the 1950s you could buy a hamburger for something like 50 cents. Today, you can use a multiplier like the current price divided by 6 times to measure this and result in a 50 cent burger in real terms that compares to what you could buy back in 1950. Say you could buy a log for $100 in 1950, and it cost you $600 today, then you know that real GDP from logging is still the same by dividing it by 6. However, if it cost you more than $600 today, you know that you are getting less logs for the amount that you paid in 1950 so you are getting less value for what you are paying for and real GDP for logs is going down! What impacts this? Tariffs, interest rates, subsidies, exchange rates, government policies, and so on! As far as I know, the largest impact on the real GDP of the logging industry right now is Canadian and US lumber industry tariffs. Because of tariffs and other factors within this particular industry, the real GDP of the Canadian lumber industry may be less than in 1950 because Americans are willing to pay less for the same amount of lumber (when excluding inflation and variables that affect inflation) than back then.
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