Macroeconomics is the study a nation’s economy and the economy’s inner workings. One way to measure a country’s economy is by the Gross Domestic Product (GDP) is used. The GDP gives us the monetary “big picture” of everything that has been produced, to include goods and services. “GDP measures the market value of not just apples and oranges but also pears and grapefruit, books and movies, haircuts and healthcare, and on and on (Mankiw, 2015, p. 486).” The Bureau of Economic Analysis measures the GDP in four quarters to reflect how the economy of a nation is doing, as well as in years. This data can be used to reflect the percentage of change between quarters or between years.
When it comes to the GDP there are different types: nominal, …show more content…
Louis-Economic Data, 2016). The national income of a country is the income that was “earned by a nation’s residents in the production of goods and services” and “is almost identical to the net national product (Mankiw, 2015, p. 489).” Net national product is what the total income, minus depreciation, is for a nation’s residents (Mankiw, 2015, p. 489). Between these two they differ slightly due to “statistical discrepancies” from the entities that collect the data. Differences between gross domestic product, gross national product, and national income are a little more. Gross domestic product looks at the market value of the final goods and services from a country during a certain time, i.e. quarters or a year. Gross national product (GNP) is close to gross domestic product, but it does not look at the economic value from goods or services owned by foreigners. On the other hand, the GNP does include goods and services produced in another country from companies owned by the United States. National income looks just like the GNP, but it has subtracted …show more content…
However, it can show what the economic activity of the country is such as if the economy is expanding itself or if it is contracting. The New Economics Foundation says that there a few other ways to look at when deciding the well-being of a society and what they want from the economy, not just the GDP. Good jobs with employment statistics, asking the actual wellbeing of citizens, the environment of a nation, income fairness, and overall health are indicators of a nation’s overall wellbeing (Wallis, 2016). Where the nation has a GDP, so do states where it can be called gross domestic product or gross state product. Texas had a real GDP of $1,174.672 billion in 2008 with an increase each year to equal $1,475.535 billion in 2015 (Department of Numbers, n.d.). Texas had $38,044 per capita placing them rank 19 out of 50 states in the United States (Coakley, Reed, & Taylor,
When it comes to the GDP there are different types: nominal, …show more content…
Louis-Economic Data, 2016). The national income of a country is the income that was “earned by a nation’s residents in the production of goods and services” and “is almost identical to the net national product (Mankiw, 2015, p. 489).” Net national product is what the total income, minus depreciation, is for a nation’s residents (Mankiw, 2015, p. 489). Between these two they differ slightly due to “statistical discrepancies” from the entities that collect the data. Differences between gross domestic product, gross national product, and national income are a little more. Gross domestic product looks at the market value of the final goods and services from a country during a certain time, i.e. quarters or a year. Gross national product (GNP) is close to gross domestic product, but it does not look at the economic value from goods or services owned by foreigners. On the other hand, the GNP does include goods and services produced in another country from companies owned by the United States. National income looks just like the GNP, but it has subtracted …show more content…
However, it can show what the economic activity of the country is such as if the economy is expanding itself or if it is contracting. The New Economics Foundation says that there a few other ways to look at when deciding the well-being of a society and what they want from the economy, not just the GDP. Good jobs with employment statistics, asking the actual wellbeing of citizens, the environment of a nation, income fairness, and overall health are indicators of a nation’s overall wellbeing (Wallis, 2016). Where the nation has a GDP, so do states where it can be called gross domestic product or gross state product. Texas had a real GDP of $1,174.672 billion in 2008 with an increase each year to equal $1,475.535 billion in 2015 (Department of Numbers, n.d.). Texas had $38,044 per capita placing them rank 19 out of 50 states in the United States (Coakley, Reed, & Taylor,