What Is Gross Domestic Product?

Go to the following website:

www.bea.gov/index.htm

Based on the information contained on the website above, answer the following questions:

1. What was Real GDP for 2009?

$12703.1billion

a. What does GDP tell us?

GDP tells us the monetary value of all goods and services produced within the country excluding net income from abroad.

b. How did GDP change from 2008?

It decreased from $13161.9billion to $12703.1billion.

c. What caused these changes?

2. What was GNP for 2009?

$57.41trillion

a. What is the difference between GDP and GNP?

GDP, Gross Domestic Product tells us the monetary value of all goods and services produced within the country excluding net income from abroad while GNP, Gross National Product, tells us the monetary value of all goods and services produced by a country’s nationals within and out of the country.

b. How did GNP change from 2008?

It decreased from $57.59trillion to $57.41trillion

c. What caused these changes?

3. What was National Income (NI) for 2008?

The gross national income in 2008 was $14,506,142million.

a. What does National Income tell us?

National Income tell us the total money value of all final goods and services produced by the nationals of a country during some specific period of time – usually a year – and to the total of all incomes earned over the same period of time by the nationals.

b. What is the difference between GNP and NI?

Whereas the Gross National Product is the sum of all incomes of the nationals of a country, national income also accounts for depreciation.

c. What caused these changes?

4. What was Disposable Income (DI) for 2009?

a. What does Disposable Income consist of?

It is the income that households actually have available to spend or to save. Disposal income is GNP less any part of it that is not actually paid over to households, less the personal income taxes paid by households, plus transfer payments received by households from the government.

b. How did DI change from 2008?

c. What caused these changes?

5.     What was GDP in 2008 (sometimes called GSP) for your state?