What Is Gross Domestic Product?

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What is Gross Domestic Product?

Jordan Power

ECO2013

Mark Thompson

February 1, 2016

What is Gross Domestic Product?

Gross Domestic Product is the total amount of the government’s activity is regards to the economic spending. This amount is a cumulative of four different parts. The four factors involved in Gross Domestic Product are consumption, investment, government spending, and the amount of exports minus the imports. All of these parts make up what Simon Kruznets named Gross Domestic Product in 1937. Kruznets was born in 1901 on April 30 in Pinsk, Russia. Before his death, on July 8th, 1985 in Cambridge, MA, he received his degree from Harvard Law. From there, Kruzets became an economist for the National Bureau of Economic Research. In 1971, Simon Kruznest received a Nobel Prize for his measurement in national income accounting. His innovative involvement in working to create a simplified solution to account for all the government activity was also a major reason for him being awarded with a Nobel Prize. He was not only concerned with the economic growth of the United States, but also that of poor countries. Simon Kruznets found out ways to improve those countries economy based on his findings, regarding the growth and difference of disparity between rich and poor people. During all of this, Kruznets taught economics at Harvard, Johns Hopkins and the University of Pennsylvania. Although Simon Kruznets was a major player in the
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