Gross Domestic Product Is The Value Of Goods Produced And Services

1236 WordsSep 8, 20155 Pages
Gross Domestic Product, also known as GDP, is defined as the value of goods produced and services provided in a country during one year. Gross Domestic Product is important in the culture of economics because in the United States, we use it to measure the well-being of the economy. Gross Domestic Product is measured in quarters, there are four quarters in one economic year. Say the Gross Domestic Product is down 10% in Quarter One and then in Quarter Two the Gross Domestic Product has gone up by 15%. You subtract 15% from 10% and then you are left with 5%. Therefore, the economy, or the Gross Domestic Product, has grown by 5% since the last quarter. If the Gross Domestic Product was never measured, we as Americans would not know if the economy was growing, shirking, or staying the same. On news channels like FOX News, FOX Business Network, CNN, and MSNBC we hear them talking about the nation’s economy and the gross domestic product all the time. On shows like Neil Cavuto, they have guest on the show to discuss the current gross domestic product and how it’s either improved or diminished over the past years or quarters. In 2010, on Neil Cavuto’s FOX Business Network show, “Cavuto on Business” the group was discussing the downplays of the fourth quarter gross domestic product. The gross domestic product for the fourth quarter had jumped 5.4%. Neil and four other contributors were discussing whether or not the Obama Administration was going to increase spending or put money
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