A pleasant view from my hotel room in Genting...(family weekend) 

GDP and Inflation - what's that....

I kind of wonder what's the formula for GDP calculation and the inflation rate,so i managed to get the simple formula using an understandable example shown below;

GDP and CPI Calculations

Key Concept:
If you want to measure the change in quantity over the span of a year you have to hold the prices fixed. If you want to measure the change in prices over a year you have to hold the quantity fixed.

Good/Year Quantity of Beef Price of Beef Quantity of Corn Price of Corn Quantity of Computers Price of Computers
2000 100 $2 300 $1 50 $5
2001 150 $2 400 $1.5 60 $7
2002 150 $3 500 $2 70 $8

Calculating Nominal GDP
Nominal GDP measures both the change in prices and the change in quantity. To calculate the change in nominal GDP from year to year we must calculate the cost of all goods produced in any one given year using the prices of that year and measure the percent change from year to year.

2000: 100*$2 + 300*$1 + 50*$5 = $750
2001: 150*$2 + 400*$1.5 + 60*$7 = $1320
2002: 150*$3 + 500*$2 + 70*$8 = $2010

The numbers in bold represent the cost of all goods produced in the indicated year. To measure percent change from one year to the next you use the following formula:
(Value in year 2 – Value in year 1)/Value in year 1 *100%
Therefore the calculation for the percent change in Nominal GDP from year 2000 to 2001 would be (1320-750)/750 * 100% = 76%
This means that nominal GDP grew at a rate of 76% from 2000 to 20001.
From 2001 to 2002 the calculation of Nominal GDP looks as follows:
(2010-1320)/1320 *100% = 52.27%
Remember when calculating Nominal GDP to allow both prices and quantity to vary.

Calculating Real GDP
Real GDP measures the change in quantity produced. In order to measure the change in quantity produced we fix the price of all goods being produced. We use the prices of the goods in whatever base year is decided. For our calculations we will use 2000 as a base year. This means that for all our calculations the price of beef will be $2, the price of corn $1 and the price of computers $5. In order to find the value of all goods produced in a given year we take the sum of the 2000 values of all goods produced in any given year.

2000: 100*$2 + 300*$1 + 50*$5 = $750
2001: 150*$2 + 400*$1 + 60*$5 = $1000
2002: 150*$2 + 500*$1 + 70*$5 = $1150

To calculate the percent change we use the same formula that we used before.
Percent change from 2000 to 2001 would be:
(1000-750)/750 * 100% = 33.3%
Percent change from 2001 to 2002 would be:
(1150-1000)/1000 * 100% = 15%

This means the economy grew at a rate of 33.3% in 2000 and a rate at 15% in 2001.
Remember that when you want to measure the change in quantity produced, you must keep the prices fixed.

Calculating the GDP Deflator:
To calculate the GDP deflator you simply take the Nominal GDP and divide it by the Real GDP and multiply by 100. This will measure the growth of prices in the economy.

GDP Deflator for
2000: (750/750) *100 = 100
2001: (1320/1000) * 100 = 132
2002: (2010/1150) * 100 = 175

Note that your base year GDP Deflator should have a measurement of 100 since the prices used in the Nominal GDP calculation and the Real GDP calculation were the same. If you don’t have a GDP Deflator of 100 for your base year, try your calculations again.

Next to calculate the inflation rate one can calculate the percent change from year to year using the above mentioned formula.
Percent change from 2000 to 2001:
(132-100)/100 * 100% = 32%
Percent Change from 2001 to 2002:
(175-132)/132 * 100% = 32.6%

Note that this is only one measurement of inflation. Later we will go on to discuss another measurement, CPI. The main difference is that the GDP Deflator measures the change in prices of all goods while the CPI measures the change in prices of a specific basket of goods which consumers are likely to purchase.

Older and wiser

I'm 29 today!!
Remember this
Wealth = Activity x (Skill + Knowledge)

so working hard is the key factor......

too old for the celebration...I'm 29 today.. Thanks to my wife for the cake 

Lunch at Khalifah

What a lunch we had, my two friends enjoying the puff thinking about the next move,I wonder how much money they've spend at this Khalifah section 7 restaurant.. Could it be 5% of their total salary? Ask them,Amirud-din and Izhar 

Nobel laureate and world-leading expert on the workings of memory pills - Eric Kandel... I'm gonna need his help... lately I can't even remember where i left my car key.... 

Spring in Paris.. 

Bonjour..... 

Balik Kampung

Danial enjoying his day as a kampung dude... 

balls heaven yeah.... 

Danial...so into camera...but the sister.... not the promo type... 

London Attacked!!

Reading through the daily newspaper, I came across the London bombing story- ‘4 kids were on their way into Luton station’ – was the picture of the day. These are the so-called terrorists who sacrificed their youth or even worst -their life for the struggles of others. In the past few days Tony Blair and his best friend Bush are trying so hard to promote their plan to stop this kind of attack- what will they do? Bomb any nation that can’t fight back…make sure it’s a Muslim country coz it is easier to explain once the world question their move. I’m not an extremist but I need to make my stand, killing the innocent is wrong! It doesn’t matter who did it, let it be the terrorist killing civilians or the coalition forces killing the innocent in Iraq (it could be a mistake but Bush you’ve got take the responsibility) it’s just not right.
Why don’t we look at the root of this problem, giving a solution would be inappropriate without defining the problem on the first place. The terrorists are not so keen on destroying the civilization or the western people just for fun, it’s the western and the American’s policy that makes all this happen. For so long the Palestinian struggle in their own ground and not a single UN peacekeeping country care about them. Israeli rule the White house with their super-dollar and a crystal clear agenda of not giving back the land they took from the Palestinians and this is why they (Al-Qaeda) declared this holy war. Attacking Iraq is not a solution to this problem but it would be a strong catalyst towards the reaction of hatred and anger, which will result in more killing of the innocent.
The Malaysian press should be able to act against all this by giving a correct definition for every action. A terrorist will always be a terrorist and no different with the one in London but labeling the Chechen fighter as terrorist like the English press did is politically wrong and should be corrected. There are fighting for their independence, the same as what the Americans did long time ago. Malaysian press should be promoting the younger generation of Muslim scholar with great knowledge in both religion and real life, Prof. Tariq Ramadan who were banned in France and US should be the next personality of the week in Utusan Malaysia not akademi fantasia.

WMy wife and daughter Qasdeena... this was during the visit to Bukit Tinggi 

The honest dude 

A good friend...

Monday would be the dateline for my proposal to one of the customer( a big one. I'm stucked in the offive on a weekend and it is so strange and boring. Luckily there's Nidzam(the dude in that photo).... a guy that don't talk that much but he is damn efficient.. this post is small tribute to this dude...THANKS DUDE with the 'D'....

I'll be writing on other important issue on Monday.

WHAT’S IN THE KAABAH

Being muslim, Hajj or Haji will be compulsory once you have the combination of money and health. August last year, I had a chance to visit Mecha(thanks to someone courtesy and god willing) to perform Umrah with my parents and aunty. Performing the Umrah was a great experience for me especially the moment I step into Masjidil Haram(where the Kaabah's located), hundreds of people performing the Tawaf at every moment till the end of time, some were crying others doing the wirid and they came from various background, the rich and the poor together. Looking at the Kaabah really makes me wonder what’s inside the four corners producing that great power to the believer.
Yesterday, I met someone who has been inside there-amazingly my wife’s uncle. And after long discussion and persuasion I managed to discover the greatest wonder. This is his story….

‘as I climbed the ladder to the Kaabah door, my heart suddenly stop pumping with my brain working overtime thinking back all the bad things that I’ve done… could it be boiling steel and big fire waiting to punish me?…will I just collapse the moment I step in…believe me everything goes in my mind but I knew that it is impossible to get a second shot at it….
The moment I step in all I can see was darkness, as my eyes start to do the adjustment writing of Quran verse on the surrounding wall of that empty space slowly visible and everyone inside was either crying or in total silent. Slowly I adapt myself to the darkness and performed a 2 rakaat solat, miraculously I felt like the four wall were spinning and all of a sudden I can see my own self sitting helpless as if my soul were separated from its own body. After the prayer I started crying spontaneously with no control…things was just different and my god there is no words to describe the feelings….
Everyone back home told me not to look up in the Kaabah-they said you could be blind by doing so but nonetheless my curiosity overcome the rational behind all that and the moment I look up all I can see was the same red brick you saw on the outer part of Kaabah…how on earth did the bricks stay up there without any support makes me wonder till this day… Subhanallah…’

Anybody have got other story pls post it

My lovely son Danial 

Two days ago I went down to Bumiputera Commerce Bank conveying my problem with the card eating ATM at my workplace. So called customer service was simply unfriendly, with no desire to smile or speak up. Each question that I slowly and nicely asked to him was replied in sarcastic tone blended with not so interested face.
My first question: What can I do to get back my card that stuck in one your ATM machine?
The answer: Nothing
My reaction: Wait for the next word in the sentence………but not a single word from him!
My next question: What’s the procedure?
The answer: None, just wait.
My third question: How long shall I wait?
The answer: Minimum 2 weeks…..
He stops answering and continue with other documents on his table….

My god don’t they understand that I’m not a beggar but a decent customer that trust them to keep my money safe. None of the guards were pointing guns to their head, and therefore any of the staff can make up their decision to quit if they don’t like the job. The thought that I might need to withdraw money never cross the shallow mind of this staff. Why don’t he guide my clearly on the options available so that I don’t end up borrowing money from spouse for everyday things.

Arghhh 

MY LIFE

I was born in 1976 in a small town call Teluk Intan somewhere in the north of the country (Malaysia). Most of my life was spend outside of this mysterious town - hopping from one boarding school to another looking for the best adventure without really knowing what to do about the future. It was after high school that I finally decided that I want to earn a living as an engineer (pretty much not the first choice now) after being conned by promises made by one of the old cabinet minister, saying that Malaysia is gonna need lots of them(engineer) and the salary would be sky-high. University days in Manchester thought me the real meaning of independence and moderation, parents were far away-choices of ‘enjoyable but wasted’ activities was easily attainable, money was the restriction ( which is not much compared to the homeless earning) or could be the catalyst to an alternative enjoyment i.e football, cricket and knowledge.
Met Jaja(my lovely wife) in Sheffield during my second year and took the big decision of life partnership in 2002, my son Danial Azmi and daughter Elyza Qasdeena are the two biggest reward. As for this moment I’m enjoying life with family as well as struggling with the not so sure choice of career. This Blog is where I’ll be displaying what’s stuck inside.

This is my first post on the blogger. Sports and other on going issue locally and internationally will be the topics of discussion within this small blog. Hope to write again tomorrow.....