Lower Division Capstone_Unit4_IP_brainmass

Lower Division Capstone_Unit4_IP_brainmass - investment or...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Going Forward: Expected U.S. GDP Growth Rate A Presentation to the Local Chamber of Commerce A country’s gross domestic product (or GDP) measures the money equivalent of the goods and services produced by all the residents within its borders regardless of the nationalities of these residents whereas its gross national product (or GNP) takes into account the nationality of the producers. In other words, GNP is the money measure of goods and services produced by all citizens within and without the country’s physical borders. Governments measure GDP as one method to determine the total economic activity of their jurisdiction within a certain period of time. Hence, GDP is an effective performance measurement of the effectiveness of these governments’ fiscal and monetary policies. GDP can be measured in two ways. One way to measure GDP is the expenditure approach which adds total domestic expenditure to exports of goods and services and deducts imports of goods and services. Total domestic expenditure is consumption or spending on items such as food and clothing and
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: investment or spending on houses and factories among others. A component of the income approach GDP is the total final expenditure which is total domestic expenditure and exports of goods and services. Another way is the income approach which adds wages and salaries of employees, income from self employment, trading profits of companies, trading surpluses of government corporations and enterprises and the income from rents. In the United States, GDP data including GDP in current dollars and in chained dollars, currently 2005 is the base year, is regularly communicated by the Bureau of Economic Analysis in its web site. Earliest data is 1929. The trend shows a decline in 2009 for both the GDP in current and chained 2005 dollars for the first time since GDP data were made available. This trend will probably continue for 2010 and the next year. Nevertheless, the compounded annual growth rate of the US GDP in terms of current dollars from 1929 to 2009 is 6.35%....
View Full Document

Page1 / 2

Lower Division Capstone_Unit4_IP_brainmass - investment or...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online