Lower Division Capstone_Unit4_IP

Lower Division Capstone_Unit4_IP - Expected U.S. GDP Growth...

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Unformatted text preview: Expected U.S. GDP Growth Rate Growth Going Forward GNP v. GDP GNP Gross national product Money measure Goods and services Produced by ALL residents within and without the country’s physical borders Gross domestic product Money measure Goods and services Produced within a country’s borders Effectively Measuring GDP Identifying the total economic activity within a certain period Identifying the impact of government fiscal and monetary policies on the economy Income approach Expenditure approach Income Approach Wages and salaries of employees Wages and salaries of employees 1. Income from self­employment 2. 3. 4. Trading profits of companies Trading surpluses of government corporations and enterprises Income from rents = The GDP Expenditure Approach 1. Consumption (spending on items such as food and Consumption (spending on items such as food and clothing) Plus investments (spending on houses, factories, and so on) Plus exports of goods and services (foreign spending) 1. 1. Equals total domestic disbursement Equals total final disbursement Deduct the imports of goods and services (spending abroad) = GDP The United States Bureau of Economic Analysis Economic Recurrently reports economic data The GDP in sequence with 2005 dollars The GDP in current U.S dollars Works with record data from 1929 to 2009 Current GDP Trend Current GDP Growth Rate Figures GDP A Compounded annual growth rate table. 1929-1940 1941-1950 1951-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2009 GDP in b illions of current d ollars -0.19% 8.77% 4.49% 6.66% 9.48% 6.37% 5.20% 3.69% GDP in b illions of chained 2005 d ollars 1.63% 3.92% 2.74% 3.96% 2.84% 2.98% 3.43% 1.51% Compounded annual growth rate from 1929 to 2009 6.35% References: United States Bureau of Economic Analysis, A guide to the National Income and Product Accounts of the United States Concepts and Methods of the United States National Income and Product Accounts "U.S. Department of Commerce. Bureau of Economic Analysis". Bea.gov. 2009­10­21 Christian Leipert (March, 1987) "A Critical Appraisal of Gross National Product: The Measurement of Net National Welfare and Environmental Accounting ...
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