Macroeconomics: the GDP - Essay Example

Comments (0) Cite this document
The subject of this research article “Macroeconomics: the GDP” is based on the GDP of the US economy in terms of effecting an underlying momentum. It implies that the growth rate is measured in accordance with the economic output and retail sales…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Macroeconomics: the GDP
Read TextPreview

Extract of sample "Macroeconomics: the GDP"

Macroeconomics Macroeconomics The of the article is based on the GDP of the US economy in terms of effecting an underlying momentum. It implies that the growth rate is measured in accordance with the economic output and retail sales. For instance, expansion rate seasonally is currently at 3.7 percent unlike the previous annual rate of 2.3 percent. Overall, the projected improvements to achieve the momentum for the first-quarter gain is 10.1 percent against the previous reading that recorded 6.6 percent.
Therefore, the macroeconomics concept that features in the article is GDP in relation to the national income. GDP, thus, is assessed from the perspectives of economic growth and the impacts upon the global stock prices. Alternatively, for the national income, the existing retail sales and gasoline prices are calculated to study emerging improvement.
Consequently, the author’s explicit or implied point of view is that without GDP, the US economy cannot attain its momentum that subsequently affects national income and investment. Additionally, the business cycle hugely rely on the economic growth in terms notable through consumer spending and other retail sales figures (Sparshott & Hilsenrath, 2015). Monitoring the GDP numbers equally becomes a fundamental step of interpreting the microeconomic concepts.
In terms of relevance to my study of macroeconomic theory in ECO2013, I believe the article achieves a few vital functions. First, it highlights the relationship between US economy’s GDP and its national income. Second, it affirms the need for consistent economic growth to boost consumer trends and investments for all sectors such as retail and manufacturing.
Sparshott J. & Hilsenrath J. (2015, August 27). ‘GDP number reveal underlying momentum, possible headwinds for U.S. economy.’ Wall Street Journal. Retrieved from Read More
Cite this document
  • APA
  • MLA
(“Macroeconomics: the GDP Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from
(Macroeconomics: The GDP Essay Example | Topics and Well Written Essays - 250 Words)
“Macroeconomics: The GDP Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomics: the GDP


... (expenditure method) (Baumol et al 69). Both methods can give you roughly a similar total. With the income approach, which is also known as (GDP) I is calculated by adding the total compensation to gross profits, employees for both incorporated and non-incorporated firms in addition to taxes without any subsidies. On the contrary, the expenditure method is a more usable or common approach and is calculated by adding investment, total consumption, government spending and net exports. Introduction GDP is termed as the market value of all the final goods and services that are produced domestically in one year. It is also regarded as the single most important measure of macroeconomic performance. It is closely related to the measure... there is...
7 Pages(1750 words)Essay

Macroeconomics Article

...Sanam Mukhtar Presented to Topic Macroeconomics February, 28, 2008 Macroeconomics Economics is that branch of social sciences that looks at the production, distribution and consumption of goods and services. The two main branches of economics are microeconomics and macroeconomics. Microeconomics deals with the decisions at small scale. For example, what to buy at the store, or how many products a company will make. The opposite is macroeconomics. Macroeconomics is that branch of economics in which we deal with the overall performance, nature, structure and behavior of a national or regional ...
4 Pages(1000 words)Article


...the effect of an increase in government spending on real output. What factors or possible problems should a government bear in mind when devising an expansionary fiscal policy Fiscal policy is an effort by the government to stimulate the economy by adjusting and monitoring the level of spending. It refers to government purchases, transfer payments, taxes, and borrowing as they affect macroeconomic variables such as real GDP, employment, the price level, and economic growth. Using the income expenditure model, we will focus on the demand side to consider the effect of changes in government purchases, transfer payments and taxes on real GDP demanded. The short story is that at...
8 Pages(2000 words)Essay


...It is imperative to know what the GDP is before commenting on whether if it is a true indicator of quality of life or not. The GDP of any country isthe money values worth of all the goods and services produced within the economy in a given fiscal year (Sloman J 2009). This unfortunately is not a true representation of the quality of life that is prevalent within an economy, the GDP per capita which is the money values worth of all goods and services produced within the economy divided by the total population of the country to some extent is a representation of the quality of life but even that does not reveal a holistic and complete picture because it does not show how many people...
4 Pages(1000 words)Essay


... GDP a. Interest on AT &T bond would be included in the calculation of GDP when calculating GDP using income approach. Interest earned by an individual income is included in the GDP in the year the interest was earned by an individual. b. Social security payments received by a retired worker is not accounted for in the calculation of GDP since it is just a transfer payment. c. The service of a painter in painting the family home is included in the calculation of GDP if the painter was an outside contractor and pays tax. However, if the painter is a family member, his work, or benefit will not be included in the calculation of GDP (Mankiw 506). d. The income of a dentist is included in the calculation of GDP on the year the income... was...
1 Pages(250 words)Assignment


... Macro and Micro Economics Real Gross Domestic Product refers to the value earned by goods and services produced within a period of one year. According to the latest real GDP release highlights, it can be noted that the value of goods and services produced within the United States raised considerably. It raised by 2.4% to be precise, when weighed to the previous release highlights. This is so because there was increase in both personal consumption expenditure and exports. The significant rise in real GDP is also attributed to increase in private inventory investments as well as increase in nonresidential fixed investment. According to the US Bureau of Economic Analysis that is tasked with the duty of breaking down the worth earned... by the...
2 Pages(500 words)Essay

Pfizer Macroeconomics

...Pfizer Microeconomics Pfizer Macroeconomics There are various macroeconomic variables that affect the demand and supply of Pfizer pharmaceuticals. One of the variables is the GDP that enables income earners, producers and macroeconomic planners to take appropriate rational and pre-emptive actions. Such actions assist the firm to avoid any negative effect of a change in the direction of the economy. When GDP is high in the countries that Pfizer pharmaceuticals supply their products, the result is that the demand will be high as the people have better living standards. It is with no doubt that the profit margins of the company always increase. Unemployment...
2 Pages(500 words)Term Paper


...GDP GDP Introduction Before the invention of GDP during 1930-40s, Gross National Product used to indicate the growth pattern of any country. However, GDP has further developed this concept, as it is based on the total output and consumption figures of the specific country. Nevertheless, it does not take into consideration the domestic household output, as charges for cleaning a house or cooking food are not established. In addition, GDP does not indicate the general happiness of the country’s citizens, as it cannot be quantified. Discussing GDP The present global economic scenario has placed due significance to the GDP as it is considered to be the tool that measures a particular country’s prosperity level. As per the UN system... ,...
5 Pages(1250 words)Essay


...GROSS NATIONAL PRODUCT INSTRICTOR Gross Domestic Product (GDP) measures the total value of all final goods and services that are produced within the borders of any given country (Mankiw, 2012). It is the method that is commonly used to measure the output as well as the size of an economy. Being one of the key indicators that are used to gauge the health of the economy of a country, GDP gives a bird’s-eye view of how a country’s economy is doing. For instance, if the GDP speed up then the economy is doing well and people are getting better pay or more jobs (Barro, 2008).  Even though, GDP has been used to measure the health of an economy, it has some limitations. Firstly, it fails to include harmful side effects in its calculations... . For...
2 Pages(500 words)Essay


...Gross Domestic Product (GDP) Question In measuring the well-being of its citizens, countries often use Gross Domestic Product (GDP). This is because GDP is the basic measure of the society’s economic well-being, and a better measure of the US citizens’ economic well-being would be the GDP per person. A substantially higher real GDP today than it was 60 years ago shows that the US has been capable of producing a greater output of goods and services in the present than in the past, given that the GDP is in real terms (Mankiw, 2007). Some of the increases in the real GDP can be attributed to the increased population growth...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macroeconomics: the GDP for FREE!

Contact Us