What Is the Gdp?

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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 1.7.5”, 2015).
a. What is the difference between GDP and GNP?GNP was used as the primary measure of production in the United States until it was replaced by the GDP in 1991. The GNP measures the market value of goods and services by labor and property of a country’s citizens regardless of where it was produced. Whereas the GDP measures what comes from those goods and services by labor and…...

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