Question

suring the Economy's Performance this assignment, you should use the information in the textbook and the information found on the official government website: w bea gov/index.htm sed on the information contained in the textbook and on the Web site above, answer the following questions: 1. What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? W was real GDP in 2008 and has it changed since 2008 2. What was national income (NI) for 2008? What does national income tell us? What is the difference between GDP and NI? How has NI changed since 2008? What caused these changes? 3 What was disposable income (01) for 20097 What does disposable income consist of? How did DI change from 2008? What caused these changes? 4. Does GDP measure the well-being of society? Why or why not? 5. What was GDP in 2008 (sometimes called GSP) for your state? How does your state rate when compared to other states? ubmission Details: Submit a 4 to 6 page Microsoft Word document, using APA style Name your document SU, ECO2072_W2, LastName Firstinitial Submit your document to the Submissions Area by the due date assigned.

Answer 1

The Gross Domestic Product (GDP) explains the market value of all final goods & Services produced within a country in a given period. The real GDP increased 1.1 percent from 2007 annual level to 2008; this is compared to the 2.0 percent increase in 2007. According to the BEA (2009, p. 3), “The reason for this increase of 1.1 percent is because of six distinguished contributors; exports, personal consumption expenditures, federal government spending, nonresidential structures, and state and local government spending.”

“The production of goods and services valued at constant prices.” The real GDP for the year of 2008 was -3.8 (advance), and -6.2 (preliminary). Yes, the GDP has changed since 2008; in 2011, the GDP for the US was 1.5%.

2. National income (NI) is a term used interchangeably with national dividend, national output and national expenditure. It was developed in response to the Great depression caused by lack of economic data. On this basis, national income has been defined in a number of ways. The total amount of income accruing to a country from economic activities in a year's time. GDP, and national income measures how much economic activity that took place during a specified amount of time (usually a year). With GDP which measures the market value of goods, whereas national income measures through depreciation value. National income was revised down for all 3 years: $15.0 billion (or 0.1 percent) for 2009, $28.7 billion (or 0.2 percent) for 2010, and $62.3 billion (or 0.5 percent) for 2011 (bea, 2016). In 2008 the national income was 14.78 trillion. The cause of these changes may have been caused by a decrease in income being generated the goods and services by labor and property.

3. Disposable income is the income available to persons for spending or saving. It is equal to personal income less personal current taxes. In 2009 disposable income was 9,836.70 in which was more in 2008. This change occurred due to the decrease of GDP and GDI. Disposable income is money that needs to cover food, shelter, clothes, non-essential purchases, savings, etc. .

4, The Gross Domestic Product, as I have come to understand, is an accurate measurement of the growth of the economy because it takes into consideration the increase in the total amount of goods and services output by a given economic country. However, it does not give a complete aspect of the economy itself, nor does it show the society’s well-being. For example, in the aftermath of a major natural disaster, like a hurricane or an earthquake, the Gross Domestic Product will increase to reflect the rebuilding activities. These rebuilding activities include the cost of new investments and building materials, as well as the cost of paying labor to rebuild.

5. The GDP for North Carolina in 2008 was 0.1, with a per capita GDP of $35,719. From what I can tell, North Carolina was in the second lowest quintile category for GDP in 2008. This shows that North Carolina was at the bottom of the totem pole for GDP, when compared to other states. However, it was not the lowest. The lowest GDP was -1.6, in which were found in two different states. These two states were Florida and Delaware. The highest GDP was 7.3, which was found in the state of North Dakota.