Assignment 2: What Is Gross Domestic Product?

-The nation’s GDP is a good measure of its economic well being and progress because it represents the total value of all goods and services produced in an economy, and what a country produces and what it consumes are nearly identical.

7. Distribution network Contracted Support standard out is $50,830, actual output is $50,460. This is a favorable variance of -$370. This is a selling expense that is lower due to lower sales. 8. Administrative Salaries standard output $170,000, actual output is $171,000. This is an unfavorable variance of $1000. This increase is due to the Competition Bikes efforts to increase sales. Overtime was authorized to work on advertising campaign. 9. Executive Compensation standard output is $220,000, actual output is $218,000. This is a favorable variance of -$2000. This variance is due to an executives not taking a bonus due to lower sales. 10. Employment taxes standard output $29,835, actual output $29758. This is a favorable variance of -$77. This variance is due to an employee furlough because of low sales.

GDP is the calculation of the total goods and services produced in one year. It measures the economy's size and compares how the economy performs in other countries. GDP is measured in three different ways, as the value of goods and services produced, as domestically produced goods and services spending, and as a factor income from firms. With the value of goods and services produced, GDP is calculated by adding the goods and

GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers

The real GDP is determined by using a price deflator, which can tell you how prices have changed from year to year. How the BEA does this is by multiplying the deflator by the nominal GDP. The real GDP is lower than the nominal GDP. When calculating the real GDP the BEA doesn’t include income from U.S. companies, and people from outside the country. They also take out inflation. Then the final product is counted, meaning that if a U.S. citizen makes a shirt and the outfit was made in the U.S. then the value of the outfit as a whole will be counted. When interpreting the GDP it can be used to show investors which companies are growing the fastest. It can help investors know where to invest so they do not lose money. So in conclusion, I hope that I was able to give you guys an idea of what the economy may look like based on recent history and expected future conditions. It’s important to remember that our economy must be thriving for the better if we all want our business to be successful. In my opinion I feel that if we concentrated more on getting our children an education then they would be more productive in the economy. So once again I hope that we all learned something today and good luck on all of your business endeavors.

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

6. Why do economists use real GDP rather than nominal GDP to gauge economic well-being? Define the GDP deflator.

What is the current distribution of wealth in South Dakota? It is important to establish this fact in order to see where all of the money rests

We will begin with real GDP. Real GDP, an acronym for Gross Domestic Product, is the total value of final goods and services during a particular period or year adjusted for price changes. The GDP is an indicator of a country’s economic health. Final goods and services definition is a goods consumed rather than used for further processing. The Real GDP is increased or decreased based Inflation or deflation.

Incorrect. The correct answer is B. As explained in Section 2-1, real GDP equals nominal GDP divided by the GDP deflator.

Normally, real GDP is a much better measurement then nominal GDP for the basic fact that the value of a loaf of bread is remained unchanged, but because of the fluctuation of the inflation, that makes it market price different.

C: The expansion in real GDP in 2014 reflected constructive contributions from personal consumption expenditures (PCE), nonresidential fixed investments, exports, private inventory investment, state and local government spending, and residential fixed investments that were offset by negative commitment from government spending. Imports, which are subtraction in the count of GDP expanded.

GDP is the market value of all final goods and services produced within a country in a given period of time. GDP is basically the measure of a nation's total income and is an important tool in explaining a single society's economic well-being (Mankiw, 2009).

GDP consists of Gross (before taking into consideration the depreciation in the value of the product), Domestic (within the borders of a country) and Product which simply means a good or service. So what does it all mean when all these three factors are interlinked? GDP is simply the market value of all the final goods and services produced within a country in a given time period – usually a year (Parkin et al. 2005: 438).

Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A more reliable measure of economic growth is real GDP per capita; this measurement takes into account both the total production of the nation and the total population. Real GDP per capita measures the real income per head of the population.