Gross Domestic Product (GDP)

745 Words 3 Pages
Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) is the market value of all final goods and services produces within a country in a given period of time (Mankiw,2015). It looks at how the economy is doing. Author N. Gregory Mankiw uses an example of judging a person by seeing how a person lives. What kind of home he/she has, how much money is he/she making? This is similar to what GDP does for the economy. It judges how well the economy is doing. GDP is divided into four components: consumption, investment, government purchases, and net exports. Each area is analyzed to see the kinds of spending that ultimately make up GDP.
Gross Domestic Products and its Components
Gross Domestic Product (GDP) is divided into four components:
…show more content…
Goods such as automobiles and appliances, good and clothing. Services include intangible services such as haircuts and medical care (Mankiw,2015). Eve very day items that are being purchased are considered consumption which accounts for more than two-thirds of GDP for the U.S. economy (Commerce, 2016). I find myself spending more often due to the availability of items. Online marketplaces like Amazon.com have made shopping so easy and convenient, that I feel like I overspend, at times. The variety of products and services that are available makes the purchase that much easier since there is a multitude of …show more content…
Government purchases are now called the government consumption expenditures and gross investments which are a measure of government spending on goods and services such as government salaries, fuel for military jets and rent for government buildings (Bureau of Economic Analysis, 2010a). I provide administrative support to scientists in the marine sciences in my current position and some heavily rely on government-funded research projects. The Office of Naval Research (ONR) and the National Science Foundation (NSF) provide a number of grants to our scientists to conduct research on research vessels and provide the results of their research. Not only is there an educational component, but the researchers are able to add value to their respected field of work. As I manage the operations side, I am able to see all the great work (although at times don’t understand all the terminology) that is produced from the funded

Related Documents