...I discussed the GDP in my first post and decided to post a response to this one too; the .U.S. Department of Commerce released fourth quarter real gross domestic product rates of 2014. According to the Bureau of Economic Analysis (2015), the value of produced goods and services in the U.S. increased 2.2 during this quarter (para. 1). This means that the production of goods adjusted for price changes for the period when the second estimate was released on February 27th. That is a 2.8 percent drop from 5.0 percent third quarter GDP results of 2014 (U.S. DOC, 2015, para. 1). As previously stated GDP measures the economy performance of the nation or country during a certain period of time (annual or quarterly). GDP measured in terms of dollars regard the total of all goods and services produced (McConnell, Brue, & Flynn, 2015); unfortunately, there are several shortcomings or limitations in measuring the total output or national welfare. The shortcomings of GDP measure both total output and total utility (McConnell, et al., 2015, p. 561); the total output shortcomings include non market activities (household production) such as homemaker services and parental childcare (Lee, n. d.; Toward, 2010). Non market activities are products and services that are produce by people and are not bought and sold on the market. Legal economic and illegal activities are underground activities, the second type of shortcoming of GDP. Underground activities consist of products or services purchased...
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...1. What was Real GDP for 2009? The real GDP for 2009 was 14.54 trillion. A. What does GDP tell us? GDP tells us the total dollar value of all goods and services produced over a specific time. B. How did GDP change from 2008? In 2008, the GDP was 14.58. It decreased in 2009. C. What caused these changes? The cause for these changes were due to the recession. Government spending also increased. 2. What was GNP for 2009? The GNP for 2009 was 14.74 trillion. A. What is the difference between GDP and GNP? The difference between GDP and GNP is, GNP includes net foreign income rather that net export and imports. GNP adds net foreign investment income. GDP measures the nation’s economy performance. GDP is determined by the market value of all final goods and services made within the U.S. boarders. GDP is focused on output rather than who produces it. B. How did GNP change from 2008? The GNP in 2008 was 14.67 trillion. Therefore the GNP was lower in 2008. C. What caused these changes? The changes might have been changed due to a decrease in values of goods and services. 3. What was National Income (NI) for 2009? The national income for 2009 in trillion was 14.49. A. What does National Income tell us? The national income tells us how much money is being earned within the United States. The national income helps track the health of the country’s economic resources. B. What is the difference between GNP and NI? The difference...
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...By indicating the economic activity within the U.S. with real gross domestic product (GDP), the economic growth of the nation can be measured. This value could be found in numerous ways; either using the value added approach, income approach, or the expenditure approach. The value added approach is when firms are surveyed to take note of their profit, the income approach is measuring GDP by dividends (the total of wages earned by labor), however the most commonly used method to find the GDP would be the expenditure approach. This approach is where the consumer, investment, and government spending are added together along with the difference of exports and imports. While real GDP is often relied on to be a measurement of the general standard...
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...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 GDP measures...
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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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...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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...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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...millions of meters of cloth. Therefore, there is no way except to reduce them to a common measure. This common measure is money. General Economics: National Income in India, Concept & Measurement 3 Basic Concepts in National income • Gross domestic product • Gross domestic product at constant price and at current price • Gross domestic product at factor cost and Gross domestic product at market price General Economics: National Income in India, Concept & Measurement 4 Basic Concepts in National income • • • • Net domestic product Gross national product Net national Product Net national product at factor cost or national income General Economics: National Income in India, Concept & Measurement 5 Gross Domestic Product • Gross domestic product is the money value of all final goods and services produced in the domestic territory of a country during an accounting year. General Economics: National Income in India, Concept & Measurement 6 Gross Domestic Product at Constant price and Current price • GDP can be estimated at current prices and at constant prices. If the domestic product is estimated on the basis of the prevailing prices it is called gross domestic product at current prices. General Economics: National Income in India,...
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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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...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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...JOSEPH ROLL- No 57 [COUNTRIES JAPAN & Hong Kong] GDP The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country's economy. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period—that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits) .Japan GDP Analysis The Gross Domestic Product (GDP) in Japan was worth 5867.15 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of Japan is roughly equivalent to 9.46 percent of the world economy. Historically, from 1960 until 2011, Japan GDP averaged 2335.35 Billion USD reaching an all time high of 5867.15 Billion USD in December of 2011 and a record low of 44.31 Billion USD in December of 1960. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods...
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...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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...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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...Economic measures such as the Gross Domestic Product (GDP) and the Gross National Product (GNP) are used to gauge the growth of an economy. Economic development is all about increasing the wealth in a nation as a whole. Economic development is the promotion of more intensive and more advanced economic activities through such means as education, improved tools and techniques, more available financing, better transportation, and creation of new businesses, (Microsoft Student, 2009a). Gross Domestic Product (GDP) is the total value of goods and services produced in a country over a year. It is an estimate of market throughput, adding together the value of all final goods and services that are produced and traded for money within a given period of time. Gross Domestic Product (GDP) is calculated by adding up the value of all goods and services that are produced, by adding up the expenditure on goods and services at the time of sale and lastly by adding up the producer incomes from the sale of goods or services. Gross Domestic Product (GDP) measures a country’s economic activities regardless of who owns the productive assets in that country, (Costanza etal, 2009:5). One key difference between the two concepts therefore is the value of production by multinational companies which is sent home from abroad. Another difference between the two measures of economic development is that GDP is a better measure of the state of production in the short term whilst GNP is a better measure...
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