...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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...RUNNING HEAD: Gross Domestic Gross Domestic Product By: Amy Montes AIU online Busn300-110 The Gross Domestic Product is defined as the market value of the goods and services that are produced by a country. The GDP is calculated three different. The expenditure approach this will calculate the final spending on goods and services. The Product approach is calculated by the market value of goods and services produced. Lastly the income approach this would be the sum of the income received by all the producers in the specific country. Gross Domestic is a measure of the nation’s economic income and the output. The GDP is the total market value and is also measured in dollars. Each year the final goods and services are produced. When a merchandiser makes a purchase of goods and services they are delivered from business to households that are in exchange for payments such as money. When the person of that household makes the payment thee money is then turned into the business to pay for taxes. Look at it this way. One persons spending is another person’s income. To increase living countries will increase their Gross Domestic product growth. The Growth Rate is determined by the Bureau of Economic Analysis. Each quarter the BEA will estimate the data. In the year 2010 the GDP in the United States was 14.7 trillion. The Bureau of Economic Analysis( BEA) will accurately compare a year to year report to determine the real GDP. The Gross Domestic product increased 3.1 percent...
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...Approach to Calculating GDP Nominal GDP- the market value of all final goods and services from the nation in a given period of time. Table 1. Gross Domestic Product or nominal GDP (in Billions of dollars) | | 2012 | 2013 | | | III quarter | IV quarter | I quarter | II quarter | 1 | Gross domestic product | 16,356.0 | 16,420.3 | 16,535.3 | 16,661.0 | 2 | Personal consumption expenditures | 11,193.6 | 11,285.5 | 11,379.2 | 11,427.1 | 3 | Gross private domestic investment | 2,493.3 | 2,499.9 | 2,555.1 | 2,621.0 | 4 | Net exports of goods and services | -524.4 | -515.8 | -523.1 | -509.0 | 5 | Government consumption expenditures and gross investment | 3,193.5 | 3,150.7 | 3,124.1 | 3,121.9 | Table 2. Real Gross Domestic Product (in Billions of chained dollars) Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes. | | 2012 | 2013 | | | III quarter | IV quarter | I quarter | II quarter | 1 | Gross domestic product | 15,534.0 | 15,539.6 | 15,583.9 | 15,679.7 | 2 | Personal consumption expenditures | 10,541.0 | 10,584.8 | 10,644.0 | 10,691.9 | 3 | Gross private domestic investment | 2,456.5 | 2,441.8 | 2,470.1 | 2,524.9 | 4 | Net exports of goods and services | -436.5 | -412.1 | -422.3 | -424.4 | 5 | Government consumption expenditures and gross investment | 2,988.8 | 2,938.8 | 2,907.4 | 2,904.5 | During the inflation the nominal GDP is higher than real GDP, because real values...
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...Ateneo de Zamboanga University School of Management and Accountancy Accounting Academic Organization Economics Requirement A Research Paper in Econ 112 (A) Prepared by: INTONG, Bryan O. CHIONG, Leo Anthony A. AGIAS, Juville Bryan RAMOS, Marie Christalene A. Submitted to: Henry A. Paňales Moderator April 26, 2014 I. Introduction A. MALAYSIA Malaysia’s economic freedom score is 69.6, making its economy the 37th freest in the 2014 Index. Its score is 3.5 points higher than last year, with impressive improvements in seven of the 10 economic freedoms including financial freedom, investment freedom, labor freedom, and business freedom. Malaysia is ranked 9th out of 42 countries in the Asia–Pacific region, and its overall score is above the world and regional averages. Over the 20-year history of the Index, Malaysia’s economic freedom score has declined by 2.3 points. Declines have been recorded in five of the 10 economic freedoms, including property rights, freedom from corruption, and investment freedom. Most notably, freedom from corruption has declined by over 25 points, undermining the rule of law. Over the past two decades, Malaysia’s economy has mostly been rated “moderately free.” Registering one of the 10 best score improvements in the 2014 Index, Malaysia has charted an upward trajectory of economic freedom for the past five years. It has undertaken wide-ranging reforms to address various structural weaknesses and improve competitiveness. Recent...
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...Term Paper .Economics is used in almost all aspects of life. It is about the choices and decisions we make. An understanding of economics will show how to live and exist in the world today and help us understand how the business world works. As the concept of economics is discussed, many terms are used to describe how economics works in the world. There terms will be defined so that they are better understood throughout the discussion of the economy and market demand. The terms Gross Domestic Product (GDP), Real Gross Domestic Product, Nominal Gross Domestic Product, Unemployment rate, Inflation rate, and Interest rate, help to break down the analysis of economics and give a better understanding of the direction our economy is headed. Part One: Terms and Definitions Gross domestic Product (GDP) is the market value of all recognized final goods and service produced within a country. It is measured by household consumption spending, business investment spending, and government purchases to equal net exports. It is important to the economy because it shows the growing economical rates. Real GDP is an adjustment for inflation. It is based on the prices of a good or service in a year with inflation or deflation accountability. It accounts for changes in the pricing level and then provides a more accurate figure. Economist rely on this to get a constant pricing. Nominal GDP does not adjust for inflation. It is based on the prices of goods or services in a year without inflation...
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...about business expansion, 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 ...
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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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...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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...expenditures approach says GDP= consumption + investment + government expenditure + exports - imports. The income approach sums the factor incomes to the factors of production. The output approach is also called the "net product" or "value added" approach. c. Final and intermediate goods * An intermediate good is a good or service that is used in the eventual production of a final good, or finished product. These goods are sold by industries to one another for the purpose of resale or producing other goods. d. Gross and net private domestic investment * Gross private domestic investment is the measure of physical investment used in computing GDP in the measurement of nations' economic activity. This is an important component of GDP because it provides an indicator of the future productive capacity of the economy. * Net private domestic investment indicates the total amount of investment in capital by the business sector that is actually used to expand the capital stock. e. Net exports * Net exports are the difference between a country's total value of exports and total value of imports. Depending on whether a country imports more goods or exports more goods, net exports can be a positive or negative value. f. GNP, NDP, NNP, NI * Gross national Product – the market value...
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...GDP Gross domestic product (GDP) defines aggregate output as the dollar value of all final goods and services produced within the borders of a country during a specific period of time, typically a year. Gross domestic purchases prices— increased 1.3 percent in the third quarter after increasing 1.5 percent in the second quarter. Because most products go through a series of production stages before they reach the market, some of their components are bought and sold many times. To avoid counting those components each time, GDP includes only the market value of final goods and ignores intermediate goods altogether. GDP is a reasonably accurate and highly useful measure of how well or how poorly the economy is performing. But it has several shortcomings as a measure of both total output and well-being (total utility). In the second quarter, real GDP increased 3.9 percent, which shows the greatest growth in GDP. Consumer spending increased, spending on services/goods increased, business investment increased, and exports of goods increased. Top of Form Bottom of Form The third quarter had the least amount of growth. According to the “advance” estimate released by the Bureau of Economic Analysis, real gross domestic product increased 1.5 percent in the third quarter of 2015, which reflected the least amount of growth. Based on the data I have researched in the Bureau of Economic Analysis document, I project real GDP will increase 2.9% during this year. More people will...
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...over time, short-run fluctuations in the economy, and performance issues. In order to understand and answer these questions one must first understand the fundamentals and the components that drive the economy. Throughout this paper we will describe the fundamentals that make our economy; these fundamentals are Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The gross domestic product or GDP, measures countries output of all goods and services that are produced in the country (Amadeo, 2014). The factors of the gross domestic product are personal consumption expenditures plus business investments plus government spending plus exports minus imports (Amadeo, 2014). After one understands the factors of the gross domestic product it is easy to calculate the gross domestic product if one fallows this simple formula C + I +G+ ( X – M ) (Amadeo, 2014). The next component is the Real GDP. The Real GDP is a measurement of the economic output of a country minus inflation. This allows a person to evaluate the economy's production for each quarter more accurately (Amadeo, 2014). By doing this a person can tell if more product is being produced or if the price is just going up. Nominal GDP is our next component. Nominal GDP is describing as a figure that has not yet been adjusted for inflation. For example if one sees the nominal shot up say 12% but inflation is at 7% the real GDP is only 4% (Amadeo, 2014). So what is the different...
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...railways, transport other than railways, communication, banking and insurance, available so far. The advance estimates at current prices are derived by estimating the implicit price deflators (IPDs) at sectoral level from the relevant price indices. The salient features of these estimates are detailed below: I ADVANCE ESTIMATES OF NATIONAL INCOME, 2011-12 Estimates at Constant (2004-05) Prices Gross Domestic Product 3. Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2011- 12 is likely to attain a level of Rs. 52,22,027 crore, as against the Quick Estimates of GDP for the year 2010-11 of Rs. 48,85,954 crore, released on 31 st January 2012. The growth in GDP during 2011-12 is estimated at 6.9 per cent as compared to the growth rate of 8.4 per cent in 2010-11. 4 . The growth rate of 6.9 per cent in GDP during 2011-12 has been due to the growth rates of over 8 per cent in the sectors of ‘electricity, gas and water supply’, 'trade, hotels, transport and communication', and 'financing, insurance, real estate and business services'. There may be slow growth in the sectors of ‘agriculture, forestry and fishing’ (2.5%) , manufacturing (3.9%) and construction (4.8%). The growth in the mining and quarrying sector is estimated to be negative(-2.2%). 2 Agriculture 5 . The ‘agriculture, forestry and fishing’ sector is likely to show a growth 2.5 per cent in its GDP during...
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...following is a breakdown of some of the important concepts of Macro Economics. This will describe in detail what Gross domestic product, Real GDP, Nominal GDP, Unemployment rate, inflation rate, and interest rates affect the economy. These are all concepts of the National Income as well. One of the most important objectives of the government is to increase the level of the rate of economic growth which is possible can be measuring the national income. The Gross domestic product is the total market value of all goods and services produced in an economy in a certain amount of time, mostly up to one year (Colander, 2010). It is defined as the market value of the goods and services produced with a country in a certain given period of time. The GDP measures the annual value of all economics that is taking place with in the economy and the GDP measures the value added basis in order to stop the problems of double counting. The real gross domestic product is the market value of the goods and services produced in an economy in the same year (Colander, 2010). When the produced goods are sold to people this will bring income to the person that is selling the produced good. This in turn will increase the outgoing and incoming income to the company. This is what the business will get there market planning from for the years to come. Nominal gross domestic product is measured in terms of the process operating in the year in which the output is produced it is referred to as the...
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...There are three sections to differ the economy system used between Angola and Switzerland which are: * Index of economy freedom * Gross National Income and Gross Domestic Product * DHL Global Competitiveness Index 2013-2014. 1. Index of economy freedom Angola According to the 2014 Index of Economy Freedom, Angola listed as 160th out of 178 countries that are under observation. With total score is 47.7, this nation has a lot of troubles in term of rule of law, open market and government spending. In law, the government uncontrolled the corruption cases and it might become the barrier for international investors to contribute Angola’s wealth because it is risky to set up the business inside the distrust government. For evidence, the corruption perception index 2012 stated that Angola ranked as 22nd country most corrupt. Besides, this country got low score in term of property right which is 15. Based on the information, Angola is one of the strong socialism countries due the government control the income of the business and fail to reform the economy since the weak rule of law and trade freedom. Same with other socialism nations, the government ignore the opinion from their citizens. In fact, the labor freedom score in 2013 was 44.8, less 15.9 point from the average Index of economic freedom while the freedom of the press was under depression as ranked 157th out of 197 nations. Therefore the policy of “property is held in common and not individually, and relationships...
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...Economic Environments on Business Activities Task 4 Your local magazine plans to publish a follow-up article to the first one, which was well accepted. In this article, you will need to choose one of the two organisations from your initial article and compare it with an organisation from another industry. This requires you to research a different economic environment and to look at one business from that industry. This business with then be compared with your local business. * Draw up a table of economic data for your local organisations and one other contrasting economic environment. * Choose at least two economic topics and collect relevant data from two different industries example GDP, retail sales, inflation and interest rates. * Using the data collected in your table, describe the influence of two contrasting economic environments (i.e. the economic data collected) on business activities within your selected organisations. Economic Environment An economic environment is the factors that have effects on the working of the business. This will include the system, policies and the nature of the economy, economic resources, level of income, distribution of income, trade cycles and wealth. GDP The gross domestic product or the gross domestic income (GDI) is one of the measures of national income and output. It is defined in 3 ways which gives identical results. 1. It is equal to the total expenditures for all final goods and services produced within the country throughout...
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