What Is Gross Domestic Product

Assignment 2: What is Gross Domestic Product ECO201 Macroeconomics Instructor: George Williams Carleen Wardlow student at Argosy University July 3, 2013 (1)
What was Real GDP for 2009?

The Real GDP for 2009 was that there was a decrease at an annual rate of 6.1 percent in the first quarter of 2009, (that is from the first quarter to the fourth quarter), according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, the real GDP decreased 6.3 percent. Also the Real GDP for 2009 was 13,973.7 in billions of current dollars, 12.757.9 in billions of chained 2005 dollars, 1967Qi, 817.8 in billions of current dollars, and 3,915.4 in billions of chained 2005 dollars www.bea.gov/newsrelease/natonal/gpd/2009/pdf/gdp109.pdf.

(a) What does GDP tell us?
GDP tells us about our country’s economy by telling us the total money value of all final goods and services that is produced in an economy over a period of time. (b) How did GDP change from 2008?
The GDP changed from 2008 because there was a financial crisis. There was a larger decrease in December of 2008 which led to the manufacturing nondurables inventories decrease of $53.3 billion over three months. This caused the BEA to do a revision to inventory investments, exports, and consumer spending www.bea.gov/fa/index.cfm?faq_id=1003. (c) What caused these changes?
These changes were caused because of the recession. This happened because of the decline in the economy activity. Personal consumption, real export of goods, and services has decreased, and the government spending has also increased www.bea.gov/newsreleases/national/gdp/2008/gdp108f.htm.

(2) What was GNP for 2009?
The GNP for 2009 was 14, 117.2 www.bea.gov/newsreleases.national/gdp/gdpnewsrelease.htm. (a) What is the difference between GDP and GNP?
The difference between GDP and GNP is that GNP includes net foreign income rather than net export and imports. GNP adds net foreign investment income. GDP measures the nation’s economy’s performance because it is determined by the market value of all final goods and services made within the borders of the nation www.bea.gov/glossary/glossary_g.htm. (b) How did GNP change from 2008?
The GNP changed in 2008 by increasing throughout 2008, then the GNP starting decreasing in 2009. Domestic businesses, and households also increased www.bea.gov/newsreleases/regional/gdp_state/gsp_newsrelease.htm. (c) What caused these changes?
Income receipts for the rest of the world decreased, and exports and imports of goods and services increased www.bea.gov/newsreleases/national/gdp/2010/gdp4q09_adv.htm.

(3) What was National Income (NI) for 2008?
The National Income for 2009 was 12,609.1 www.bea.gov/national/2008annual.htm. (a) What does National Income tells us?
National Income tells us the rate of economic growth living standards, and any changes in the distribution of income between any groups or population www.teara.govt.nz/en/national-income-and-gdp. (b) What is the difference between GNP and NI?
GNP reflects the national output and income of an economy, and takes into account net income receipts from abroad, and National Income is measured at factor cost as the aggregate earnings of labor and property that arise in the current production of the nation’s goods and services www.economicshelp.org. (c) What caused these changes?
The changes was caused by the financial crisis was created from the housing bubble and the mortgage industry www.bea.gov/national/an1.htm.

(4) What was Disposable Income (DI) for 2009?
Disposable Income for 2009 was 10,722.4 www.bea.gov/newsreleases/national/pi/2009/pi0409.htm. (a) What does Disposable Income consist of?
Disposable Income consists of the amount of income left to an individual after taxes have been paid, and it is available for spending or saving. It also consists of wages, salaries, financial assets, and nonprofits from businesses www.bea.gov/papers/pdf/DPI_MSA_Dunbar.pdf. (b) How did DI change from 2008?
DI changed from 2008 because of compensation to employees received fluctuated in the first three quarters of 2008 www.bea.gov/newsreleases/national/pi/2008/pi0508.htm. (c) What caused these changes?
The changes caused because of the drop in the U.S standard living. This means less money was being spent, less remodeling for homes or businesses. This decline was due to the falling net worth, and rising consumer prices www.bea.gov. (5) What was GDP in 2008 (sometimes called GSP) for your state?
The GDP for my state, which is the United States in 2008 was 12.88

REFERENCES Bureau of Economics Analysis, “Why has the initial estimate of real GDP for the fourth quarter of 2008 been revised so much?”, (August 05, 20ll),www.bea.gov/fa/index.cfm?faq_id=103

Bureau of Economics Analysis, Mataloni Lisa, “Gross Domestic Product,” June 26, 2011,ww.bea.gov/newsrelease/national/gdp/2009/pdf/gdp

Bureau of Economics Analysis, Mannering. H. Virginia, “Corporate Profits in GDP Accounts,”www.bea.gov/newsreleases/national/gdp/2008/gdp

References: Bureau of Economics Analysis, “Why has the initial estimate of real GDP for the fourth quarter of 2008 been revised so much?”, (August 05, 20ll),www.bea.gov/fa/index.cfm?faq_id=103 Bureau of Economics Analysis, Mataloni Lisa, “Gross Domestic Product,” June 26, 2011,ww.bea.gov/newsrelease/national/gdp/2009/pdf/gdp Bureau of Economics Analysis, Mannering. H. Virginia, “Corporate Profits in GDP Accounts,”www.bea.gov/newsreleases/national/gdp/2008/gdp