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Essay Available:
Pages:
5 pages/≈1375 words
Sources:
4 Sources
Style:
APA
Subject:
Mathematics & Economics
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 25.92
Topic:

Gross Domestic Product

Coursework Instructions:

Visit the Bureau of Economic Analysis Web site at www(dot)bea(dot)gov  In U.S. Economic Accounts under National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click “Begin using the data”, and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters.

a) Present the information that you received in your project as a table.

b) Write a report (1 page double - spaced), which contains the analysis of the results you received.

In this report consider, but do not be limited to the following:

  1. Why was nominal GDP greater than real GDP in each of those quarters?
  2. What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter?  What was the percentage change in Real GDP for the two quarters?
  3. What accounts for the difference in the two percentages?

Part 2: Income Approach to Calculating GDP (weight 25% of the assignment grade)

Complete the following exercise:

Go to http://www(dot)bea(dot)gov/

Find the information on GDP in billions of current dollars for the past four quarters. In U.S. Economic Accounts under National click on Gross Domestic Product (GDP), then click on Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables – click “Begin using the data”- choose Section 1: Domestic Product and Income and find table 1.7.5

 Create the table that contains the following information for the last year quarterly. Omit the intermediate lines found in Table 1.7.5 on the web site.

Gross domestic product

Gross national product

Net national product

National income

Personal income

Write a report in your own words (1 page, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following:

1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP?

2. Based on the table, what calculations must you make to determine GNP from GDP?

3. What is national income (NI)? What does NI measure?

Coursework Sample Content Preview:

Name:
Instructor:
Institution:
30th August 2015
Part 1
(a).Table.

GDP

2014, 3rd Quarter

2015, 4th Quarter

2015, 1st Quarter

2015, 2nd Quarter

1

Real Gross Domestic Product

16,068.8

16,151.4

16,177.3

16,324.3

2

Nominal Gross Domestic Product

17,522.1

17,615.9

17,649.3

17,902.0

(b). Report.
Based on the statistical representation of the data from the table above, it is very clear that the nominal GDP is greater than the real GDP in each of the respective quarters. The underlying reason for this is that the nominal GDP does not keep into consideration or allow for inflation. This is where the real GDP comes in, since it is well adjusted to keep in mind the current economic situation, specifically, the inflation rate.
In calculation of the percentage changes in the GDP between the 2nd and 1st quarter of the year 2015, it can be seen that there is a 0.91% growth in the real GDP, and a 1.43% growth of the nominal GDP respectively. The differences in the percentages between the two quarters are an indication of the varying inflation rates and the fact that the economy has grown.
Part 2.
(a).Table

2014 3rd Quarter

2014 4th Quarter

2015 1st Quarter

2015 2nd Quarter

Gross Domestic Product

17,522.1

17,615.9

17,649.3

17,902.0

Gross National Product

17,794.0

17,880.6

17,876.8

18,120.3

Net National Product

15,032.5

15,096.3

15,084.1

15,316.5

National
Income

15,256.5

15,358.2

15,336.4

15,437.4

Personal
Income

14,774.8

14,955.7

15,079.8

15,221.3

(b). Report.
Gross Domestic Product (GDP) is the yardstick used to measure a country’s total value, in terms of the production and services used by both its citizens as well as the foreigners who live within its geographical boundaries. Gross National Product is the yardstick used to measure a country’s worth, by value of its products and services, as used by its citizens only, both within, and outside its boundaries. Both GDP and GNP are calculated over a period of one year.
The differences between these two come not only from their respective definitions, but also a number of other factors.GDP is found as a result of the sum of consumption, investment, government spending and the difference between imports and exports. Gross national product meanwhile, is the sum of the GDP, the National Inflow from assets abroad, subtracted from the net outflow to foreign assets.GDP is used to measure the strength of the economy of a given country, while GNP is a measure of how the citizens of a given country are doing ,economically. From the table, in order to determine GNP from GDP, the following formula is key;
GNP =GDP+ Income receipts from the rest of the world-income payments to the rest of the world.
National Income is a measure of the circulation of goods or services, in monetary form, produced within a given economy, in a certain time period. National Income (NI) is importa...
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