Economics Performance Assignment Help Gross Domestic Products (GDP)
GDP can be defined as the market value of all goods and services that are produced within an economy in a particular time period. It includes value of all the products and services produced within the economy (Mankiw, 2011). It tells the total
value of output of a country in a given period of time. It is equal to the total spending of consumers and governments including investments and exports by subtracting the value of total imports. In 2008, the GDP for US was $14291.5 billion, which increased slightly in 2010 to $14498.9 and $15676.0 billion in 2012. It shows a continuous increase in the GDP from 2008 (Bureau of Economic Analysis, 2013). The reforms in the country from credit crunch of 2008 in economy caused an increase in the GDP in further years. At the same time, people were also tended to invest in the secure investment alternatives, which also caused these changes in the GDP from year 2008. According to business economics assignment help experts, Real GDP is the inflation measure of GDP, which reflects the value of all goods and services produced in an economy in a given period of time based on base year prices. It is also termed as the inflation corrected GDP. In 2008, the real GDP was $13161.9 billion, which declined in year 2009 to $12757.9 because of the fear of recent credit crunch, which reduced the investment contribution of private investors (McEachern, 2008). At the same time, during this period, government spending were also lower that caused a decline in the real GDP. But after 2009, there is a growth trend in real GDP as it was $13063.0, $13299.1 and $13588.8 for the year 2010, 2011 and 2012 respectively. There is continuous change in real GDP from 2008 because of the change in the government spending, private investment, personal consumption expenditures etc.
National Income (N) NI can be defined as the value of a country’s all final goods and services produced in an economy during a given period of time. It also includes the income that comes from abroad in the particular economy during that specific time period (Mankiw, 2011). NI is an effective measure to determine the total income generated in an economy in a given time period, which is helpful to determine the living standard of people within that economy (Boyes & Melvin, 2010). The national income of USA in 2008 was $12337.4 billion, which decreased in year 2009 and increased from 2010 to 2012. An increase in the foreign direct investment and increase profits from the foreign business was the major reason for these changes in the NI of the country. The change in export and import situation also facilitated the changes in NI from the year 2008 as it increased slightly in 2012 from 2008 (The World Bank, 2013). At the same time, change in the relationship of USA with other countries also caused a change in National Income position of the country. National income and GDP are quite different with each other. GDP includes the value of total domestic production of goods and services, while NI also includes the income earned in abroad and brought in the country. GDP is a factor, which is used to determine the national income, while national income is not used to determine GDP (Mankiw & Taylor, 2006). Instead of this, production of services and goods, private and government spending and exports are used to determine the GDP of an economy. GDP is the measure of economic activities of a nation, while NI is the measure of economic health of a country.
Disposable Income (DI) DI could be termed as the amount of money, which a household holds for spending and saving after accounting for income taxes on personal income. It is one of the major economic indicators that are used to measure the economic condition of an economy. DI is the total of personal income after subtracting the income taxes on personal income (Mankiw, 2011). The income generated from all sources is included in this. The net disposable income of USA in 2009 was $11,995.6 billion, which shows total spending power of people in USA. This income was declined from the year 2008 in which it was $12470.6 billion (OECD, 2012). The disposable income changes due to change in the nature of people habits. At the same time, the change in economic conditions and recover from the credit crunch period also caused a decline in the income of households, which reduced the total disposable income of USA in 2009 from the year 2008. But after 2009, DI increased gradually as the economy of US recovered. The recovery of the economy caused an increase in the income of people gradually, which overall caused an increase in the DI of USA during 2009 to 2012.
Effectiveness of GDP GDP is used a measure to determine the economic efficiency of an economy, which identifies the effectiveness to utilize the available resources to product the products and services of the economy in a given period of time. But at the same time, there are several deficiencies of GDP to measure the well-being of the society (Boyes & Melvin, 2010). The major deficiency is that it only adds the different aspects to calculate GDP and does not make a difference between the economic activities on the basis of their advantages and disadvantages to the people in the society. It includes all the production of goods and services, while they are beneficial or harmful for the country people (New Economy Working Group, 2012). For example, selling of guns to children, oil spills are some harmful economic activities, which are added in GDP. At the same time, the depletion of non-renewable resources such as oil, coal also increases GDP, but it decreases the essential resources of the economy, on which growth of an economy depends. GDP is only the monetary value measure, which does not cover the services and goods that do not have value such as household production, wildlife viewing etc (Mankiw & Taylor, 2006). In other words, it can be said that GDP does not measure the well-being of society, which goes beyond the GDP such as environmental and social aspects. At the same time our economics case study help experts says that , it does not consider the equality aspect such as consumption differences between poor and rich people, which is essential for the social well-being in an economy. At the same time, how the income is distributed is not taken into account by GDP, which is not effective to facilitate income equality within people in the society (New Economy Working Group, 2012). Thus, it could be said that GDP is not an effective measure o well-being of the society.
State GDP My state is California and its GDP in 2008 was $1,756,115 million. The GDP of this state is quite high in compare to several states in US such as Texas, Ohio, and New York etc. But at the same time, there are some states, which have higher GDP then California (Bureau of Economic Analysis, 2013). The following table shows some states and their respective GDP:
| State | GDP (in Million) |
| Mideast | $2323695 |
| Plains | 842799 |
| Southeast | 2894903 |
| Southwest | 1521888 |
| Rocky Mountain | 449700 |
| Florida | 689445 |
| Georgia | 373862 |
(Source: Bureau of Economic Analysis, 2013) The above table shows that some states have higher GDP, while some have lower GDP in compare to California. It shows that this state has significant economic activities to contribute in the overall GDP of the economy.
References Boyes, W.J. & Melvin, M. (2010). Economics (8th ed.). USA: Cengage Learning. Bureau of Economic Analysis. (2013). Retrieved from: http://www.bea.gov/index.htm Mankiw, N.G. & Taylor, M.P. (2006). Economics. UK: Cengage Learning EMEA. Mankiw, N.G. (2011). Principles of Economics (6th ed.). USA: Cengage Learning. McEachern, W.A. (2008). Macroeconomics: A Contemporary Introduction (8th ed.). USA: Cengage Learning. New Economy Working Group. (2012). Retrieved from: http://www.neweconomyworkinggroup.org/visions/living-wealth-indicators/gdp-flawed-measure-progress OECD. (2012). Retrieved from: http://stats.oecd.org/Index.aspx?QueryId=21047 The World Bank. (2012). Adjusted net national income (current US$). Retrieved from: http://data.worldbank.org/indicator/NY.ADJ.NNTY.CD Avail economics analysis case study assignment help and business assignment help of any topic from our experts. Our business experts are available 24X7 for assignment help and ensure you that you will get original and complete assignment help services of all subjects. For assignment help can touch with our 24X7 live support system or can send e-mail at info@www.assignmenthelpexperts.com