...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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...Gross Domestic Product Syed A Johar Colorado State University (Global Campus) Mangeral Economics Instructor: OConnell, Lawrence The Shortcomings of Gross Domestic Product Real GDP per capita is used in practice as a reasonable description of economic well-being. However, in this role it has significant disadvantages. First, the valuation of so-called negative factors (air and water pollution, noise, overcrowding, etc.) should be subtracted from the value of GDP. These factors are associated with production, overstating the level of our material well-being. In order to establish the national economy it is essential to solve the problem of accounting of any kind of economic activity in the macroeconomic indicators. Environmental pollution raises significant methodological issues, one of which is the reflection of activities that are related to environmental management. In general, the usual economic growth indicators of national income and net product do not take into account the results of environmental activities, distorting its effects and dynamics. For example, a manufacturer pollutes a river and the government spends money on its cleaning (increases the GDP), but the cost of pollution is not deductible (Investopedia, 2008). Second, GDP does not include the cost of non-market operations (for example: working housewives; carpenter’s work, who has been repairing his own house; free volunteer work). All of these activities are appropriate from an economic perspective;...
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...Gross Domestic Product , Net Factor Income from Abroad and Gross National Product 1st Qtr 2000 - 4th Qtr 2010 (in million PhP) Period | At Current Prices | At Constant 1985 Prices | | GDP | NFIA | GNP | GDP | NFIA | GNP | 2005 | 5,444,038 | 447,145 | 5,891,183 | 1,211,452 | 108,548 | 1,320,000 | Q1 | 1,234,383 | 100,221 | 1,336,605 | 284,063 | 25,239 | 309,303 | Q2 | 1,316,400 | 112,436 | 1,428,836 | 297,426 | 27,429 | 324,855 | Q3 | 1,334,509 | 107,281 | 1,441,790 | 292,665 | 25,680 | 318,345 | Q4 | 1,558,746 | 127,206 | 1,685,953 | 337,298 | 30,199 | 367,497 | 2006 | 6,031,164 | 500,940 | 6,532,104 | 1,276,156 | 115,133 | 1,391,289 | Q1 | 1,386,083 | 112,729 | 1,489,912 | 299,681 | 26,491 | 326,172 | Q2 | 1,454,772 | 129,652 | 1,584,423 | 313,112 | 29,825 | 342,937 | Q3 | 1,476,946 | 113,828 | 1,590,774 | 307,750 | 26,008 | 333,757 | Q4 | 1,713,364 | 144,731 | 1,858,095 | 355,613 | 32,808 | 388,421 | 2007 | 6,648,619 | 581,491 | 7,230,110 | 1,366,625 | 129,406 | 1,496,031 | Q1 | 1,522,233 | 117,370 | 1,639,603 | 320,177 | 26,741 | 346,918 | Q2 | 1,617,189 | 156,240 | 1,773,429 | 339,120 | 34,961 | 374,081 | Q3 | 1,610,141 | 154,639 | 1,764,780 | 328,528 | 34,145 | 362,673 | Q4 | 1,899,057 | 153,242 | 2,052,298 | 378,800 | 33,558 | 412,358 | 2008 | 7,409,371 | 852,121 | 8,261,492 | 1,417,087 | 174,022 | 1,591,109 | Q1 | 1,657,677 | 167,463 | 1,825,140 | 332,514 | 36,490 | 369,005 | Q2 | 1,823,303 | 213,544 | 2,036,846 | 351,567 | 43...
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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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...Diana Lizette Ocampo Hermosillo A00568420 11/02/16 Gross Domestic Product Determined the size and the growth of the economy. GDP measures the total market value of all final goods and services produced in an economy in a given year. The value of the good and services it is determined by the price at which you pay for them in the market place, when you put together all these prices you have the total value GDP. When we talk about the “final goods and services” we mean to goods and services sold to an end user; there are intermedite goods such as tires that come with a car because the total value of the car is considered for the GDP, but when you buy only the tires are considered a final good because is sold to a final user. Prices are constantly changing, and is more difficult to determine the GDP; for example, when the conuntry produce more goods and services, or the production could be the same but the prices of these goods and services are increase, or the price and the production may vary at the same time. Nominal GDP calculate the real increase or decrase over time on a level of final goods and services; prices change o remove for GDP data. Real GDP shows the inflation which reflects the actually increase or decrase in output of this production of goods and services; remove the efects of prices changes. GDP is the national income, and it can be use for indicate the standard of living people, dividing by the country population and the result is the GDP per person...
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...GDP Paul Schroeder ECN400 CSU Global Dr. Ryman 1/31/15 GDP Gross Domestic Product, or GDP, is broken into four components: consumption, investment, government purchases, and net exports of goods and services. Personal consumption is the spending on goods and services by consumers, excluding the purchases of new homes. Investment is the spending towards goods or services that can produce a profit, such as homes and structures. Government purchases are made by local, state, and federal governments, and include goods and services like highway and building construction. Net exports is the value of a country’s domestic goods and services sold abroad, minus the value of imports from other countries. Consumption affects me as a consumer every day. Everything I purchase, such as food, clothes, or a car, falls under the GDP component of consumption. Additionally, the bills I pay for services, such as apartment renting, cellular service, and insurance, fall under this umbrella as well. Inflation can directly affect how I spend my money on consuming goods and services, since my dollar can have more or less buying power as the rate of the dollar changes in value. Also, an increase or decrease in my income can affect how much I consume in the market, contributing to the GDP. Spending also depends on how I view the market, and my optimism of its future. I am more likely to purchase things if I predict that the market, as well as my income, will remain stable. Investment does...
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...1- GDP is a good form of measuring our economic well-being. The reason for this is because GDP is the total market value of all the final goods and services produced within the economy in the year. 2- The trade deficit reduces our GDP because the excess of imports over exports makes the total number of market value of final goods and services made in a year. 3- Nominal GDP is when we use current prices to measure GDP. Real GDP is the measure that controls for changes in prices. I think that between both the most important one is nominal GDP because it is the value of GDP in current dollars. 4- The difference between GNP and GDP and what they produce is that GDP is what their citizens earn while GNP is the gross national product. This GNP is usually not to important to most countries. 5- The reason investment spending is more volatile than consumer spending is because investment spending is more likely to change rapidly and it is also unpredictable. While consumer spending is less liable to change and tends to be more predictable. 6- A consumer confidence is closely watched because if the way a consumer thinks about a business is important. Consumer confidence lets people to still have hope even when in deep in a financial crisis people will still remain to believe on that the economy will get better. Work cited O'Sullivan, Sheffrin, and Perez. Macroeconomics Principles,applications, and Tools. 8th ed. p.97-114.: Pearson, 2014,2012,2010. Print....
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...The Measurement of Gross Domestic Product Having discussed the meaning of gross domestic product in general terms, let’s be more precise about how this statistic is measured. Here is a definition of GDP that focuses on GDP as a measure of total expenditure: • Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time. This definition might seem simple enough. But in fact, many subtle issues arise when computing an economy’s GDP. Let’s therefore consider each phrase in this definition with some care. “GDP Is the Market Value . . .” You have probably heard the adage, “You can’t compare apples and oranges.” Yet GDP does exactly that. GDP adds together many different kinds of products into a single measure of the value of economic activity. To do this, it uses market prices. Because market prices measure the amount people are willing to pay for different goods, they reflect the value of those goods. If the price of an apple is twice the price of an orange, then an apple contributes twice as much to GDP as does an orange. “. . . of All . . .” GDP tries to be comprehensive. It includes all items produced in the economy and sold legally in markets. GDP measures the market value of not just apples and oranges but also pears and grapefruit, books and movies, haircuts and healthcare, and on and on. GDP also includes the market value of the housing services provided by the economy’s stock...
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...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 and sold to others and concealed from the government to evade...
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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...
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...Gross Domestic Product (GDP) calculates the output generated through the production of labor and property that is located within the boundaries of a county. Real Gross Domestic Product is an inflation adjusted measure that displays the value of goods and services and produced in a year indicated in base year prices. Real GDP is also known as “constant-price”, “inflation-corrected GDP”, or “constant-dollar GDP” ("Real gross domestic," 2012). Nominal Gross Domestic Product is a GDP amount that has not been adjusted for inflation. Unemployment rate is the percentage of the total workforce that is unemployed but willing to work and actively seeking out employment. Inflation rate is the percentage rise in the price of products and services on an annual basis. Interest rate is the amount expressed as a rate of principal by a lender to a borrower for the use of borrowed goods. Interest rates are typically registered on an annual basis, also known as the annual percentage rate (APR). Borrowed assets may include cash, consumer goods, vehicles, or buildings. Certain economic activities such as the purchasing of groceries, massive layoff of employees, and the decrease in taxes can have an effect on the government, households, and businesses. The government measures the size of the nation’s economy by its gross domestic product (GDP). The GDP is made up of four parts; consumption, investment, government spending, and net exports. ("Gross Domestic Product (gdp)", 2010). Consumption...
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...Assignment 2: What is Gross Domestic Product? 1. What was Real GDP for 2009? 13,973.7 A. How did GDP change from 2008? Indicator of the economic health of a country, as well as to gauge a country's standard of living. It also regards how much value on goods and services that are produced over a certain amount of time, either quarterly of annually. B. How did GDP change from 2008? The GDP increased in the first 2 quarters, but decreased in the 3rd only a little. The 4th quarter there was a decrease of 6.3% because of the decrease in personal consumption expenditures, Import and export, equipment and software. C. What caused these changes? There was a 4.3% decrease in personal consumption expenditures in the 4th quarter. There was also a decrease of 23.6% of the exports of goods and services. The amount of money the government spent in the 4th quarter increased by 7%, following an increase of 13.8% in the 3rd quarter. Private business had a $25.8 billion decrease in inventories. All of this put us in a recession. 2. What was GNP for 2009? 14,117.2 A. What is the difference between GDP and GNP? The GDP is an estimate of the countries worth of productions and services by their foreigners and their nationals for the year. The GNP is an estimate of the countries worth of products and services by the citizens of their land or on foreign land for the year. B. How did GNP change from 2008? The GNP changed because of the increase in 2008 of 14.35 trillion and in 2009 it started...
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...What is Gross Domestic Product? Samantha Vanderlooven 11/18/2013 Macroeconomics | ECO201 A02 Faculty: Online Instructor , Jad Habchi 1. What was Real GDP for 2009? The GDP for 2009 was -3.1 In 2009, GDP started to improve after four quarters of decline during The Great Recession. Nominal GDP for 2009 rebounded to $14.418 trillion Q1: $14,381 trillion Q2: $14.342 trillion Q3: $14.384 trillion Q4: $14.564 trillion Or The Real GDP for 2009 was 13,973.7 a. What does GDP tell us? The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year. b. How did GDP change from 2008? In the revised estimates, real GDP increased 0.4 percent for 2008; in the previously published Estimates, real GDP had increased 1.1 percent. From the fourth quarter of 2007 to the first quarter of 2009, real GDP decreased 2.8 percent at an average annual rate; in the previously published estimates, it had decreased 1.8 percent. c. What caused these changes? The increase in real GDP in the third quarter...
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...Brazil & Gross Domestic Product ECON224-1102A-11: Macroeconomics May 22, 2011 Abstract As an employee of the World Bank, I have been asked to research an economic concern in a South American country and write a report on my findings. The country I selected is Brazil. I chose to research data sets for the economic concern, Gross Domestic Product (GDP). In this report I will discuss the relationship between GDP and Brazil’s economy and trends in data sets, which are supported with statistical evidence. The Federative Republic of Brazil, commonly known as Brazil, is the largest country in South America and the world's fifth largest country by geographical area and by population. With over 190 million people it is the largest Portuguese-speaking country in the world and the only one in the Americas. There are only two countries in South America that Brazils borders do not touch, Ecuador and Chile. “Its current Constitution defines Brazil as a Federal Republic,” (Wikipedia, 2011). According to the International Monetary Fund and the World Bank (2011), the Brazilian economy is the world's fastest growing ranking as the eighth largest economy at market exchange rates and the seventh largest by purchasing power parity (PPP). Its current GDP (PPP) per capita is $10,200, putting Brazil in the 64th position according to World Bank data. The gross domestic product (GDP) is one of the measures of national income and input for a given country's economy. GDP is defined as the...
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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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