Question

Visit the Bureau of Economic Analysis Web site at www.bea.gov In “U.S. Economic Accounts” under “National” click on “Gross Domestic Product (GDP)”, then “Interactive Tables”: “GDP” and the” National Income and Product Account (NIPA)” Historical Tables, click “Begin using the data”, and use Section 1 - Tables 1.1.5 (Gross domestic product (nominal)) and 1.1.6 (Real Gross Domestic Product). 1. a) Create the table that contains the following information for the last quarter.You need this information from both Omit the intermediate lines found in Tables 1.1.5 and 1.1.6 on the web site. Gross domestic product Personal consumption expenditures Gross private domestic investment Net exports of goods and services Government consumption expenditures and gross investment 1. b) Calculate the percentage of each category in nominal and real GDP. Present the information that you received in 1 (a) and 1 (b) as a table(s) in your project. 2. Write a report (2 pages double - spaced), which contains an analysis of the results you received. In this report consider, but do not be limited to the following: 1. Why was the nominal GDP greater than the real GDP? By how much? 2. GDP is composed of a number of categories. What category makes up the largest portion of GDP? What category makes up the smallest portion of GDP? 3. What is “Gross private domestic investment”? What does gross private domestic investment measure? 4. What is “Net exports of goods and services”? Why it is negative? 5. In the table 1.1.5 find the category “National defense”. How much was the National defense for the last quarter? Calculate percentage of National defense out of “Government consumption expenditures and gross investment”. Calculate percentage of National defense out of GDP. 6. Please analyze and discuss the significance of the data that you received for this Data exercise. Reflect on what you have learned from this exercise.

Answer 1