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What Is Gross Domestic Product

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What is Gross Domestic Product?

1. What was Real GDP for 2009?
The real GDP for 2009 was 14,418.7 (NIPA Tables 1.1.5, 2014) a. What does GDP tell us?
GDP tells us the monetary value of all the finished goods and services that are produced within a country for any specific time period. This can be done annually or quarterly. It also gives us information regarding the country’s economy on all the final goods and services that are produced within a country. b. How did GDP change from 2008?
In the first three quarters there was a decrease in the in the GDP. In the 4th quarter there was a slight increase. c. What caused these changes?
These changes were caused because of the recession. They were made due to a significant decline in economic activity. Personal consumption expenditures and private investment were down and real exports of goods, services, real exports of goods and services decreased (NIPA Tables 1.1.5, 2012). 2. What was GNP for 2009?
The GNP for 2009 was 14,569.8 a. What is the difference between GDP and GNP?
GDP is the total market value of all goods and services that are produced within the United States. GNP is the value of goods and services produced by a nation or region within a period of time outside of the United States. It takes into account all net income receipts from abroad. b. How did GNP change from 2008?
The GNP increased throughout 2008 but started decreasing in 2009. There was more Consumption of fixed capital in 2009. There were less private and more domestic business; there was a decrease in capital consumption allowances, less households and more Government spending.

c. What caused these changes?
In 2009 the GNP was less because of less Income receipts from the rest of the world and less Income payments to the rest of the world.

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