Topic: Macroeconomics – Expenditure/Income approach to calculating GDP

Format of the Project:

Please note that hand-written and scanned works, pdf. files, jpg. files, as well as files posted in google drive, will not be accepted or graded.

The paper should be written in APA style Research Paper format.

No more than 20% of the text of the project should be made up of quotes.

Please note that Use of APA Citation Methodology is required for all parts of the assignment

Written projects must be:

  1. typed, double-spaced, in 12-point Times New Roman or Arial font, with margins no wider than one inch
  2. have footnotes or endnotes, with correct citations
  3. have a bibliography of sources used
  4. include, for each entry, the author, title, city and state of publisher, publisher’s name, year, and page numbers
  5. prepared using word processing software (Microsoft Word preferred), in a manner similar to the preparation of a written assignment for classroom submission 

Data exercise #1 Assignment

Consists of two parts.

Part 1: Expenditures Approach to Calculating GDP (weight 50% of the assignment grade)

Complete the following exercise

  1. Create the table that contains the following information for the last availablequarter.Please note that using the data for previous quarters will produce grade zero for this part of the project.

You need this information from bothparts of the table 3- (nominal GDP (and its components) from left columns and real GDP (chained 2012 dollars) from the right part of the table 3). Omit the intermediate lines found in Table3 on the web site.

Gross domestic product

Personal consumption expenditures

Gross private domestic investment

Net exports of goods and services

Government consumption expenditures and gross investment

b) Calculate the percentage (the proportion) of each category in nominal GDP and in real GDP.

Using Nominal GDP:

[Personal consumption expenditures / Nominal GDP]*100%

[Gross private domestic investment / Nominal GDP]*100%

[Net exports of goods and services / Nominal GDP]*100%

[Government consumption expenditures and gross investment/ Nominal GDP]*100%

And using Real GDP:

[Personal consumption expenditures / Real GDP]*100%

[Gross private domestic investment / Real]*100%

[Net exports of goods and services / Real GDP]*100%

[Government consumption expenditures and gross investment/ Real GDP]*100%

 Present the information that you received (a) and (b) as a table(s) in your project. 

  • Write a report (2 pages double – spaced), which contains an analysis of the results you received.

In this report consider, but do not be limited to the following:

  1. Why was the nominal GDP greater than the real GDP? By how much?
  2. GDP is composed of a number of categories. What category makes up the largest portion of GDP? What category makes up the smallest portion of GDP?
  3. What is “Gross private domestic investment”? What does gross private domestic investment measure?
  4. What is “Net exports of goods and services”? Why it is negative?
  5. In the left part of the table 3 (nominal GDP) find the category “National defense”. How much was the National defense for the last quarter? Calculate percentage of National defense out of “Government consumption expenditures and gross investment”. Calculate percentage of National defense out of GDP.
  6. Please analyze and discuss the significance of the data that you received for this Data exercise. Reflect on what you have learned from this exercise.

Part 2: Income Approach to Calculating GDP (weight 50% of the assignment grade)

Complete the following exercise:

Go to http://www.bea.gov/

Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop-down menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross Domestic Product, and “Full Release and Tables”. Use table 7 (Relation of Gross Domestic Product, Gross National Product, and National Income) and table 8 (Personal Income and its Disposition).

  1. Create the table that contains the following information for the last available quarter. Please note that using the data for previous quarters will produce grade zero for this part of the project.

Omit the intermediate lines found in Tables7 and 8 on the web site.

Gross domestic product

Gross national product

Net national product(you should calculate it as Gross national productminus Consumption of fixed capital)

National income

Personal income

 Present the information that you received  in your project.

2. Write a report in your own words (1 page, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following:

  1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP?
  1. Based on the table, what calculations must you make to determine GNP from GDP?
  2. What is national income (NI)? What does NI measure?
  3. Which was higher in this year, GNP or NI? By how much?
  4. What calculations must you make to determine NI from GNP?
  5. NI is composed of a number of categories. What category makes up the largest portion of NI?
  6. Please analyze and discuss the significance of the data that you received for this Data exercise. Reflect on what you have learned from this exercise.

Type of service-Academic paper writing
Type of assignment-Coursework
Subject-Not defined
Pages / words-3 / 825
Number of sources-3
Academic level-Freshman (College 1st year)
Paper format-APA
Line spacing-Double
Language style-US English

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