...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...
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...Assignment 2: What is Gross Domestic Product? Based on the information contained on the website above, answer the following questions: 1. What was Real GDP for 2009? The Real GDP for 2009 was 13,973.7 a. What does GDP tell us? The GDP gives information regarding the country’s economy in regards to total money value on all final goods and services that are produced in the economy over any given time frame - annually or quarterly. Real GDP accounts for price changes especially with inflation whereas nominal GDP does not. b. How did GDP change from 2008? In the first and second quarter, GDP increased. In the third quarter, GDP started decreasing slightly. However, export and imports of goods and services increased slightly. In the fourth quarter, real GDP decreased. Exports, imports, and personal consumption expenditures decreased. Additionally, Federal, national defense and nondefense increased through each quarter. c. What caused these changes? The causes for these changes were because of the recession. This was due to a significant decline in economic activity. Additionally, personal consumption expenditures and private investment are down dramatically and real exports of goods and services and real exports of goods and services decreased. Furthermore, government spending has increased. 2. What was GNP for 2009? The GNP for 2009 was 14,117.2. d. What is the difference between GDP and GNP? GDP (Gross Domestic Product) is the total market...
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...Assignment 2: What is Gross Domestic Product? Jeanette Macintyre Argosy University ECO 201 Assignment 2: What is Gross Domestic Product? Based on the information contained on the website http://www.bea.gov/index.htm, answer the following questions: 1. What was Real GDP for 2009? According to Table 1.1.6. (Real Gross Domestic Product, Chained Dollars) the GDP of 2009 is 14,418 billion dollars (“Table 1.1.6”, 2015). a. What does GDP tell us? GDP is the output of goods and services by labor and property. GDP measures aggregate final production taking place in a country. GDP = Consumption + Investment + Government spending + Net exports (Colander, 2007 pg 159). b. How did GDP change from 2008? According to Table 1.1.6. (Real Gross Domestic Product, Chained Dollars) the GDP of 2008 was 14,830(“Table 1.1.6”, 2015). That is a decrease of 412 billion dollars in 2009 a difference of 2.8% (“Table 1.7.1”, 2015). c. What caused these changes? The change was due to a decrease in durable goods in 2009. According to Table 1.1.6 (Real Gross Domestic Product, Chained Dollars) in 2008, durable goods were at 1,083 billion dollars and a decrease of 60 billion dollars down to 1,023 billion dollars in 2009, a 5.85% reduction in expenditures (“Table 1.1.6”, 2015). 2. What was GNP for 2009? According to Table 1.7.5. (Relation of Gross Domestic Product, Gross National Product, Net National Product, National Income, and Personal Income) the GNP in 2009 was 14,569 billion dollars (“Table...
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...Gross Domestic Product LaRaysha Y.Mobley AIU Online BUSN 300 Capstone Abstract The gross domestic product (GPD) is the most important economic indicator on the health of a country’s economy. GDP represents the total dollar value of all goods and services produced over a specific time period (Koba, 2011). The figures are released every business quarter by the Business Economic Analysis. What does the data mean and how will it affect our U.S. citizens. U.S. Gross Domestic Product Growth Rate Going Forward This paper will cover the United States Gross Domestic Product (GDP). This paper will provide trends, forecast, and statistics for GPD. This paper will explain how GDP is determined and what the data means. This paper is prepared to present to the local chamber of commerce. COC members will have an idea of what the future of the United States economy will offer based on the recent economic activities. Gross Domestic Product Gross Domestic Product (GDP) is the value of a country’s overall output of goods and services at market prices (businessdictionary.com). GDP is also used to compare the economic achievement of other countries in comparison to the United States. Economist use GDP data to determine if the economy is inflating or receding. The Gross Domestic product (GDP) expanded 1.30 percent in the second quarter of 2012. From 1947 until 2012 the United States GDP growth rate average...
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...firms use forecasts of GDP. What exactly is GDP? How do we use GDP to tell us whether our economy is in a recession or how rapidly our economy is expanding? How do we take the effects of inflation out of GDP to reveal the growth rate of our economic well-being? And how to we compare economic well-being across countries? © 2010 Pearson Education Canada Gross Domestic Product GDP Defined GDP or gross domestic product is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: Market value Final goods and services Produced within a country In a given time period © 2010 Pearson Education Canada Gross Domestic Product Market Value GDP is a market value—goods and services are valued at their market prices. To add apples and oranges, computers and popcorn, we add the market values so we have a total value of output in dollars. © 2010 Pearson Education Canada Gross Domestic Product Final Goods and Services GDP is the value of the final goods and services produced. A final good (or service) is an item bought by its final user during a specified time period. A final good contrasts with an intermediate good, which is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. Excluding intermediate goods and services avoids double counting. © 2010 Pearson Education Canada Gross Domestic Product Produced Within a Country ...
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...2012). This information will define several or many terms are used after each person whose deal with this subject macroeconomics, and include two or more examples of economics, which could affect other ideal, and issues concerning both level for higher government, and every individual level. A gross domestic product is a major word or term people need to understand is known as what is use as a gross domestic product that is also referred as the Gross Domestic Product. This product should have the rate for the value for many services, and choosing goods, which is produced within our economy during this particular price quoted in stated this year (Colander, 2010). When people produce goods usually earn the amount of income from businesses purchasing products because of the growth and the economy. This should mean certain type funds or amount of raise increases throughout each year. In this economy the actuality gross product is inflation, which adjusts some type measurement to give an estimated kind of value on any or good, and better, services that starts at the base year amount. The real product is usually considered as a constant amount. However, after the real gross product used a price index to create, which measurements should show exactly a higher amount of funds, which these level have raising pricing during each year and should take the time to...
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...GROSS DOMESTIC PRODUCT 1 What is Gross Domestic Product? Jesse Leslie Argosy University Macroeconomics George Williams 07/ 26/2014 GROSS DOMESTIC PRODUCT 2 Current-Dollar and "Real" Gross Domestic Product | 6/25/14 | | | | | | | | | | Annual | | Quarterly | | | | | | | (Seasonally adjusted annual rates) | | | | | | | | | | | | | GDP in billions of current dollars | GDP in billions of chained 2009 dollars | | | GDP in billions of current dollars | GDP in billions of chained 2009 dollars | | | 1982 | 3,345.0 | 6,484.3 | | 1960q2 | 542.7 | 3,108.4 | 1983 | 3,638.1 | 6,784.7 | | 1960q3 | 546.0 | 3,116.1 | 1984 | 4,040.7 | 7,277.2 | | 1960q4 | 541.1 | 3,078.4 | 1985 | 4,346.7 | 7,585.7 | | 1961q1 | 545.9 | 3,099.3 | 1986 | 4,590.1 | 7,852.1 | | 1961q2 | 557.4 | 3,156.9 | 1987 | 4,870.2 | 8,123.9 | | 1961q3 | 568.2 | 3,209.6 | 1988 | 5,252.6 | 8,465.4 | | 1961q4 | 581.6 | 3,274.6 | 1989 | 5,657.7 | 8,777.0 | | 1962q1 | 595.2 | 3,333.6 | 1990 | 5,979.6 | 8,945.4 | | 1962q2 | 602.6 | 3,369.5 | 1991 | 6,174.0 | 8,938.9 | | 1962q3...
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...play a big role in increasing the country’s Gross Domestic product? I. Rationale In every country, gross domestic product (GDP) serves as an indicator to determine how well does the country performed for a specific period of time. It is an estimation of the value of the total goods and services it has produced. It matters to us when our country’s gross domestic product constantly increases from period to period, but is there really a massive increase in a country’s gross domestic product when it is election year? It is said that during this time, gross deomestic product is expected to increase for factors such as manufacturing, construction, and financial intermediation really performs well due to election related processes. With this comes the question of “what really is the effect of election year on a country’s gross domestic product?”. (http://www.investopedia.com/terms/g/gdp.asp) II. Research Problems What is the role of election year in a country’s gross domestic product? Does it automatically mean that during election year, gross domestic product is expected to increase? III. Research Objectives To find out if the election period contribute dramatically in the country’s gross domestic product.. To know whether the best year that estimates like manufacturing, construction and financial indicators perform best during election year. To determine whether this sets a standard in a country’s gross domestic product for the following years or not. I. Literature...
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... According to (Colander, 2010, p. 505) a surplus means when a country “produces more than what it consumes.” “Countries that enjoy a trade surplus have more money flowing in than out. This includes both money for the products the country exports and the money spent by foreign visitors” (Wisegeek, 2013, p. 1). The effect of trade surplus in a nation indicates it has more control over its own currency. In some ways the United States and Japan are major competitors in the market of international trade (Encyclopedia of Nations, 2013). Each, country produces many of the same goods, for example Toshiba’s major competitor in personal computers is Dell (Dell computer corporation, 1997). Toshiba is a product Japan imports to the United States. A surplus would be created, depending on the current interest and exchange rate in the United States. After the emergence of the World Trade Organization, and according to their site (WTO, 2013) is designed to “deal with the global rules of trade between nations. Its main function is to ensure that trade flows smoothly, predictably, and as freely as possible.” From inception the volume of international trade has increased and participating countries actively trade to push their product. The intent of this speech will be to explain what happens during a surplus of imports into the United States, the effects of international trade to gross domestic product (GDP), and university students. Also how tariffs and quotas affect international relations...
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...economy within smaller sectors. It is a wide and varying subject. In order to grasp the subject there are some fundamentals that one needs to be familiar with. They are the gross domestic product (GDP), real gross domestic product (GDP), nominal gross domestic product (GDP), unemployment rate, inflation rate, and interest rate. These are the basics and interact with each other to determine the condition of the economy at any given moment. Domestic Products The gross domestic product is the total of everything produced within the US economy during a given period of time. It is the market value of all FINAL products. This means that only when an item is ready for consumer purchase is it tallied into the GDP. The individual pieces of the product are not counted before production. The GDP is used to get the real gross domestic product (GDP) and the nominal gross domestic product (GDP). The real GDP is what the GDP itself is actually worth as opposed to what it cost. The nominal GDP is the face value of the GDP. In other words, what it is actually going to sell for. Rates The unemployment rate is the number of people who are able, available to work, and actively seeking employment but who are not actually working. Inflation rate is the rate prices rise in a given period and interest rate is a percent of what one is charged when he or she charges an item. Activities Purchasing groceries benefits the government and the businesses but it can go either way for a household depending...
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...Fundamentals of Macroeconomics Pua Edayan ECO/372 October 26, 2012 William Akamine Fundamentals of Macroeconomics Gross domestic product is the market value of final goods and services produced in a given period within the United States. National accounts are related to the gross domestic product which is a subject in macroeconomics. It has three ways that results are the same. Product approach is the most direct and sums the outputs. This approach has market value of final goods and services that is calculated within a year. The gross domestic product is released quarterly. It is used to measure economic outputs and the growth rate is evaluated by the Federal Reserve. Real gross domestic product reflects positive contributions from exports with fixed investments from nonresidential, personal expenditures, and state and government spending whereas, a subtraction of imports are increased. It measures the economy as the cost incurred and earned incomes of the gross domestic product are in the production. For example, if 1992 is the base year, then the real gross domestic product for 1996 is calculated by quantities of goods and services that were purchased in 1996 are multiplied by their 1992 prices. Evaluations at current market prices are known as nominal gross domestic product. Therefore, all changes in market prices include during the year due to deflation or inflation. Deflation meaning a decrease in price level and inflation that show...
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...labor, taxes, investments and government expenditures. Mostly, economics measures the behavior of industries, the government and countries as a whole. The study of economics will determine connections between employment and spending as well as the growth of the economy. There are many factors that can affect the economy. These factors may include: the unemployment rate, inflation rate, interest rate and gross domestic product. , The gross domestic product is the total market value of goods and services produced in the economy over a year. The gross domestic product is one of the primary indicators used to measure the health of the economy. Economists rely on the comparison of the gross domestic product from year to year to determine if the economy has grown. The real gross domestic product is the total market value of goods and services, stated in prices over a year. The real gross domestic product provides more accurate numbers. The nominal gross domestic product is the gross domestic product where inflation has not been taken into account. Gross domestic product may appear higher than it really is if inflation is not accounted for. The unemployment rate is the number of people in the workforce divided by the number of people unemployed. The unemployment rate is used to make comparisons between the current and previous years unemployment rate. It measures how many people are employed which provides information about the economy. If the unemployment rate is high...
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...Fundamentals of Macroeconomics Paper ECO/372 Amy J. Eulett March 4th, 2013 Dr. Mike Thirtle There are many differences between the gross domestic products (GDP), the real GDP, the nominal GDP, the unemployment rate, the inflation rate, and the interest rate. There are also many different examples of economic activities. Groceries, massive layoff of any employees along with any decreases that may accrue in the taxes are all activities that can affect someone’s business, someone’s household or even the government. They are all related in some way or another. The Gross Domestic Product can also be called GDP for short. The GDP is the market value of any of the final services or goods that within the year was produced in the economy. The real GDP is from the current year that is inflation adjusted that measures the reflects the services and goods value. The nominal GDP is when the gross domestic product is figured out but has not even been adjusted for any inflation. The unemployment rate is the total amount of the labor force that does not have a job but are wanting and looking for a job. The inflation rate is the inflation or the rate being measured to see about any price increases. The interest rate is a current rate that is paid for using the money that was charged at an earlier time. The economic activities is when someone can provide goods to someone else that they hunt, fish, or make themselves. For example, hunting, fishing, manufacturing or even mining. With purchasing...
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...Assignment 2: What is Gross Domestic Product? 1. GDP for 2009? According to the NIPA Tables 1.1.5, 2012 the Real GDP (Gross Domestic Product) for 2009 was 13,973.7. a. What does GDP tell us? The GDP acts as a yardstick used to gauge information concerning a country’s economy. It also tells us s the total dollar value of all services and goods made during a particular time period. b. How did GDP change from 2008? In the first two quarters, GDP saw growth. Although the GDP began to slightly decline in the third quarter, the importing and exporting of services and goods actually increased. The real GDP and the personal consumption expenditures decreased in the fourth quarter. c. What caused these changes? The economy was stagnant which resulted in a recession. When a recession happens private investment and personal consumption expenditures dramatically decrease. 2. What was GNP for 2009? According tp the NIPA Tables 1.7.5, 2012 The GNP for 2009 was 14,117.20. a. What is the difference between GDP and GNP? The total market value for all services and goods produced in the United States is defined as GDP (Gross Domestic Product) . The total market value for services and goods which were created by labor is the GNP (Gross National Product). b. How did GNP change from 2008? GNP increased throughout 2008 but started decreasing in 2009. The labor force was climaxing in late 2008. Then it began to decline again as ‘discouraged workers’...
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...University Professor Kornilov ECO 550 June 5, 2011 What is a counter cyclical industry? It is a type of industry that is sensitive to the business cycle, such that revenues are generally higher in periods of economic prosperity and expansion and lower in periods of economic downturn and contraction (“Cyclical Industry”, n.d.). The two industries that are chosen for comparison in this paper are the airline industry and the utility industry. To compare these two industries, macroeconomic variables will be used. The macroeconomic variables are gross domestic product, unemployment rate, inflation, employment costs, and consumer prices. Gross domestic product, the first macroeconomic variable, is the comprehensive measure of the total market value of all currently produced final goods and services within a country in a given period of time by domestic and foreign-supplied resources (Farnham, 2010). According to the Bureau of Economic Analysis (2011), the airline industry’s gross domestic product had increased by 2.8 percent in the fourth quarter of 2010. The utility industry’s gross domestic product had increased by 1.8 percent in the fourth quarter of 2010. With just these two industries, they have increased the gross domestic product. Overall, gross domestic product may actually decrease when all the other factors are added in. There are many factors that go into actually figuring the country’s gross domestic product. According to Farnham (2010), the unemployment rate is...
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