Phase 2 IP
By: Tiffany Geisler
Class: ECON210
Colorado Online University

Gross Domestic Product or GDP is an economic indicator used to measure a countries status of economic development & status as well as performance. It incorporates the total market value of all the goods and services produced within a particular country. It is calculated on an annual basis which incorporates public consumption, investments, imports & exports, government spending, and private consumption within a defined area (Chron, 2014).
PART 1
Country A’s GDP: 140,000 cars
Country A’s consumption of GDP by percentage = 64.28%
Country A’s GDP per capita = .28 cars

Keynesian economics states that government can influence the aggregate demand through intervention policies to stabilize the economy in times of excessive inflation and deflation (Boundless, 2014). During periods of low demand, country A’s government can provide tax breaks to individuals and/or industry to increase buying potential and increase spending as well as purchase additional cars to boost the country’s economy. This process can be worked in reverse in time of excess demand to slow down the economy.

PART 2 According to the latest release from the U S Department of commerce Bureau of Economic Analysis, the United States GDP is rising and the country’s Gross Domestic Income (GDI) is rising. This indicates that the current business cycle is in an expansion phase. The real GDP today is $16800 billion and the largest component is consumption. The smallest component of the GDP is net exports. The fastest growing component is consumption due to an increase the GDI (BEA, 2014). The components of the GDP that were involved in the change from last month to this month are increases in real personal consumption expenditures, real nonresidential fixed investment, real exports of