28 Sep Gross Domestic Product (GDP)

ECON312 Principles of Economics

Week 4 Discussion

Gross Domestic Product (GDP)

In these discussions, exploration is encouraged! Tie your responses to the lesson, readings, and concepts being covered this week.

 

Each week you must post three times (details below).

 

Discussion Requirements:

 

Frequency: Make three posts during the week, with each post submitted on a different date (three separate days), with the first post made no later than Wednesday 11:59 p.m. MT.

 

Initial Post (20 points): Provide a 200 words or less comprehensive response to your choice of any of the questions below. Make sure to copy and paste the question above your response so the reader knows which question you are answering. The copy/pasted question text/title is excluded from the word count.

 

Response Posts (5 points each): Provide two separate high-quality responses (more than just “I agree”, etc.) to any of your peers’ Initial Posts and/or to instructor posts.

 

Multimedia Responses:

 

Rather than just posting text, any post can be submitted as a multimedia piece that accompanies a short description in the post’s comment area. This multimedia piece could be an attached narrated PowerPoint file, a linked or embedded Kaltura video, an audio-only podcast-style response, or another similar type of multimedia presentation.

 

1. Measuring GDP

 

1. Why do economists include only final goods and services in measuring GDP for a particular year and not intermediate goods? Explain with an example. Why don’t they include the value of the stocks and bonds bought and sold and the value of used furniture and used cars bought and sold?

 

2. Income Approach to Determining the GDP

 

2. Explain what GDP is, and also explain how GDP is determined using the income approach.

 

3. Expenditures Approach to Determining the GDP

 

3. Explain what GDP is, and also explain how GDP is determined using the expenditures approach.

 

4. Economic Growth

 

4. What is economic growth and how is it measured? Also, explain how you could determine the growth pattern of the industry that you aim to establish a profession in by analyzing the components of GDP.

 

5. Current Event: GDP Growth Patterns

 

5. Follow the steps below to obtain real-world information about GDP growth patterns from the Bureau of Economic Analysis to assess GDP. Use your findings to answer the questions below in a one- to two-slide narrated PowerPoint or a short video.

 

Go to bea.gov (Links to an external site.).

 

Click on the Tools tab (on the top).

 

Click on Interactive Data.

 

Click on GDP & Personal Income under National Data.

 

Click on Begin Using the Data.

 

Click on SECTION 1: Domestic Product and Income.

 

Click on Table 1.1.1. Percent Change from Preceding Period in Real Gross Domestic Product (A) (Q).

 

To expand your search, click on Modify on the top middle portion of the table above the results, and then change the First Year to 2005 and the Last Year to the current year. Change the Series to Annual, and then click on Refresh Table. Note what happened before and after the recession of 2007–2008.

 

Also, explore other tables, particularly Table 1.1.2 and Table 1.1.4, to learn about changes in prices and how and why GDP changes.

 

Questions to Answer

 

What is the current GDP growth rate?

 

What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion?