Question

Week 3 Homework

For this assignment, you will research information related to the GDP (Gross Domestic Product). This will help you practice using the Internet as a research tool for finding financial information and you will gain insights about how the United States participates in the global economy by providing goods and services to other countries.

Use the Week 3 GDP Homework Word Document template provided below to complete your assignment before uploading it to the assignment submission area.

Instructions:

Use a search engine such as Google to do the following:

1. Define GDP in your own words.
2. Report the current GDP in trillions of dollars.
3. Report the current Federal debt in trillions of dollars.
4. Report the outlays for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
5. Report the revenues for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
6. Report the deficit for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
7. Report the debt held by the public for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
8. Discuss the inferences drawn from the numbers collected and provide insight about the impact of the numbers on the American economy in a response that is at least 5 sentences in length

Answer 1

· GDP or gross domestic product refers to the all the goods and services that are produced with in the domestic boundaries of a nation. It takes into account the monetary value of these products and services. In order terms it reflects the value of or level of economic activities that take place in an economy.

· The latest figure state that U.S. Nominal GDP/GDP(PPP) is $21.44 trillion.

· As of mid-January 2020, the current federal debt is $23 trillion.

· The bottom line of the current budget indicates that the trend of budget deficit will continue in the years to come ahead. The policy of tax cut under donal trump’s presidentship will increase the deficit of the county. This will have a huge impact on the collections/revenue collection of the government

· The expected revenues according to the last approved budget is $3.863 trillion.

· The expected deficit according to the latest budget approved is $966 trillion as of October 2020 and would go into the next year.

· The expected Debt held by public according to the latest approved budget is $17.8 trillion.

· The numbers if looked at in isolation seems to be good, especially the revenue. This however when considered in context with the existing surrounding situation the picture is not that great. The economy is already in a debit/short of $23 trillion. Even with one of the very high GDPs in the world, the government spending and tax cut which indicated the reduction in government collection indicates a greater pressure on the federal bank. A $17.8 trillion debt held by public indicates that the govern to a certain extent depends on the public, businesses and others that the government has taken loans from and is liable to pay when the holding part asks for it.

Being a powerful economy on the global scale, America is in serious debts and may need to reconsider certain budgetary decisions.