What Is Gross Domestic Product? Research Paper Example

Real GDP tells us the value of all the commodities (good and services) produced by a nation within one year, depicted in base-year prices. Real GDP accounts for the actual value of goods while factoring in inflation.

The GDP considerably dropped between 2008 and 2009. GDP dropped from $14,833.6 billion to $14,417.9 billion.

This considerable drop in GDP between 2009 and 2009 was caused by the global banking bank credit crisis that was triggered by the Subprime Mortgage Crisis.

The GNP for 2009 was;

Q1 – $14.24 trillion

Q2 – $14.25 trillion

Q3 – $14.36 trillion

Q4 – 14.56 trillion

While GDP provides the value of all the commodities (good and services) produced within a nation’s boarders, GNP provides the value of all the commodities (good and services) produced by a country’s citizen’s, both within and outside the country.

GNP fell from 2008 and 2009.

This considerable drop in GNP between 2009 and 2009 was caused by the global banking bank credit crisis that was triggered by the Subprime Mortgage Crisis.

National Income for 2009 was $12,124.5 billion

It shows the amount of money that the economy has made through its economic activities.

While GNP provides the value of all the good and services produced within a country, National Income measures the amount of money the country made through sales of these goods and services produced.

National income reduced from $12,430.8 billion to 12,124.5 billion

The changes in national income between 2008 and 2009 were caused by the global banking bank credit crisis that was triggered by the Subprime Mortgage Crisis.

Disposable income for 2009 was $12,082.1 billion.

Disposable income consists of all the money that householdshave available to them for either expenditures or savings after the deduction of taxes.

Disposable income reduced from $12,430.6 billion to $12,082.1 billion.

The changes in disposable income between 2008 and 2009 were caused by the global banking bank credit crisis that was triggered by the Subprime Mortgage Crisis. The crisis led to the increase in inflation and thus a reduction in disposable income.

The GSP for Florid was $ 748,117 million.

References

Blanchard, O., & Johnson, D. R. (2013). Macoreconomics. Boston: Pearson.

Krugman, P. R., & Wells, R. (2013). Macroeconomics. New York: Worth Publishers.

Mankiw, G. N. (2013). Macroeconomics. New York: Worth.

U.S. Department of Commerce. (2014, May 3). U.S. Economic Accounts. Retrieved from Bureau of Economic Analysis: http://www.bea.gov/index.htm