Two weeks ago, the U.S. Government’s Commerce Department reported that the country’s 2nd quarter (April-June 2015) Gross Domestic Product or GDP grew at a 3.9% annualized rate over the first quarter (January-March 2015). This was great news as the U.S. historical rate of annualized GDP growth is 3.2%.
GDP reports are of special interest to countries since they provide an important macroeconomic measurement of how much an economy's goods and services supply has grown, or recessed, compared to the prior three calendar months. GDP is considered the most important macroeconomic measurement to most economists as it measures the goods & services produced for its citizens.
GDP reports are of special interest to countries since they provide an important macroeconomic measurement of how much an economy's goods and services supply has grown, or recessed, compared to the prior three calendar months. GDP is considered the most important macroeconomic measurement to most economists as it measures the goods & services produced for its citizens.
Let me try to make the measurement of GDP easy to understand and learn why it is considered the most important macroeconomic measurement of any nation.
GDP is simply a calculation that measures the market value (final price) of all the final goods and services produced within the borders of our country, whether or not those goods and services were produced by an American or a foreign company. Thus, U.S. GDP includes Toyotas produced in Alabama. but the calculation excludes Cadillac’s made in Canada. GDP includes all U.S. exports (goods sold to other nations) since they were produced in the U.S. but the GDP calculation excludes all U.S. imports since imports, by definition, are produced in another country.
If you think about it, ultimately our country's economic satisfaction is best measured by the goods and services that are produced and that we, as citizens, have access to, which is why GDP is the measurement that is synonymous with “economic growth” or growth in goods and services for its citizens. In addition, rising GDP (more goods and services) is the ultimate economic goal of any economy, which can best be accomplished through the means of two other key macroeconomic measurements of employment and productivity, which are not the subject of this particular blog.
Let’s describe how the GDP calculation is made. Each quarter, the Government (Commerce Department) compares the final value of the domestic goods produced and services rendered in the current quarter to the final value of the goods produced and services rendered in the previous quarter. The calculation then takes the quarter-over-quarter percentage gain and annualizes the percentage by essentially multiplying by 4. The percentage growth comparison is always restated for inflation so that the production figures are comparable from one period to the next and are not impacted by changing price levels. For economic purists, we call this “real GDP” which is the only GDP reported by the media, even though the word “real” is almost always dropped to avoid confusion with the average citizen. For example, the second quarter 2015 U.S. GDP report included a 3.9% estimated GDP annualized growth rate. This means that the second quarter final value of goods and services produced was approximately .9% higher than the first quarter value. If we annualize the quarter over quarter growth that would mean we are growing at a 3.9% annual growth.
Now let me get to my favorite point on GDP, which most citizens do not understand. GDP growth in goods and services value is precisely the same as income growth! For example, in the second quarter of 2015 we can also say that incomes for Americans grew by 3.9% on an annualized basis, restated for inflation. Said another way, our country’s purchasing power grew by 3.9%, which represents the income growth to purchase the increasing 3.9% increase in goods and services. You probably never thought about it this way but every time you purchase something, every dollar you spend is going to someone as income, whether it is to the workers as wages, the landlords as rent, a bank that has made a loan as interest income, or to the owners of the business as profits. In short, Real GDP = Real Income and the only question is how that real income is dispersed among owners (profits), workers (employee wages), lenders (interest), and lessors (rent). Many citizens are unaware that the Government calculates GDP both in terms of the final market value of the goods and services PRODUCED under the “expenditure method”, which is the version that the media uses which focuses on what goods and services are produced and purchased, as well as a GDP calculation version called the “income method”, which focuses on the REAL INCOME (gains in purchasing power) earned from that same production.
I find the preceding paragraph, GDP = Income, to be a breakthrough moment for a citizen, or a first time economic student, in truly understanding the value of the GDP measurement. It is easier for most to think in terms of percentage growth in income in lieu of a fuzzier wording like GDP percentage growth.
The final point of caution is that the real GDP or income growth rate is a collective U.S. average, thus the growth in GDP or incomes does not indicate how those real income gains are accruing to the various socioeconomic classes or professions. Over the past 15 years, most of the gains in GDP or real income is accruing to the educated resulting in higher income inequality. Said another way, and using the 3.9% real GDP report, most of the 3.9% increase in incomes is going to the educated and skilled workers and to the owners (entrepreneurs)! As discussed in my last blog posting, over the last 15 years the real income gains of the middle class have stalled and have even slightly declined as global labor competition and technology have combined to "put a lid" on their real income growth.
The final point of caution is that the real GDP or income growth rate is a collective U.S. average, thus the growth in GDP or incomes does not indicate how those real income gains are accruing to the various socioeconomic classes or professions. Over the past 15 years, most of the gains in GDP or real income is accruing to the educated resulting in higher income inequality. Said another way, and using the 3.9% real GDP report, most of the 3.9% increase in incomes is going to the educated and skilled workers and to the owners (entrepreneurs)! As discussed in my last blog posting, over the last 15 years the real income gains of the middle class have stalled and have even slightly declined as global labor competition and technology have combined to "put a lid" on their real income growth.
Discussion Questions:
1. What is real GDP?
1. What is real GDP?
2. Why does Real GDP = Real Income?
3. Which four groups earn the income generated by the production of goods and services?
4. Many analyses show that our nation's middle class have made virtually no real income gains over the last 15 years. How could this be so if GDP = Income and our real GDP has been growing over the last 15 years?
6. Describe three things you would try to do as President to increase Real GDP (economic growth).
1. Real GDP is the final value of all goods produced and services rendered from one quarter to the next and annualized for that year. The GDP from the current quarter is compared to the previous quarter and the percentage change is then annualized (multiplied by 4) in order to arrive at the annualized rate. Inflation is restated so that the price of goods does not affect the GDP analysis.
ReplyDelete2. GDP equals income because the growth in goods and services means that the country's purchasing power increased by the same amount. Every dollar spent goes to someone as income.
3. Workers, banks, businesses, and landlords earn the income generated by goods and services. Workers earn wages, banks earn interest, businesses earn profits and landlords earn rent.
4. The middle class have made few income gains over the last 15 years due to technology innovations and global labor competition. While the GDP is up, the income increases have benefited the upper class, educated, business owners, and skilled workers. The income gap has increased.
5. Some of the most important determinants of GDP include investment, exports, consumer consumption, consumer spending, and government and business expenditures.
6. As president, I would try to increase employment, lower taxes, keep interest rates low. This would help to stimulate the production of goods and services as more money would be available for spending. Therefore, income levels would rise and thus GDP would rise since income and GDP are the same.
1. The real GDP is the reported GDP that we hear on the news and see in reports. This GDP is adjusted for inflation so it is comparable with previous GDP numbers. GDP stands for gross domestic product. It is a measure of the final value of all goods and services produced within a country.
ReplyDelete2. GDP can be measured in both expenditures as well as income. Every dollar spent by Americans becomes income for some other party be it a worker, a business owner, etc. Every dollar spent however also adds to GDP. If a nation has a certain purchasing power that income (known as real income) is contributed to buying the goods and services that value GDP. Real income thus equals real GDP.
3. The four groups who receive income generated by the production of goods and services are workers, landlords, banks, and business owners.
4. Most of the income gains in the past 15 years have gone to skilled workers and educated workers. This means middle class workers have received none of the income gains. Even though GDP is increasing, the increases are accrued by educated and skilled workers.
5. The determinants of GDP include increased technology, increased population (which increase the work force), an increase in schooling for the working class. Income is another major determinant.
6. Whether through funding for education in these areas or through seeking out the best and brightest minds from all over the world to work for the government, as President I would seek to innovate technology. I would also seek to create more jobs because more jobs mean more goods and services. Finally I would fund education in order to increase the number of skilled/schooled workers in the economy. Better workers, better technology, and more jobs will all increase GDP.
1. Real GDP is Gross Domestic Product (GDP) adjusted for inflation so that production figures are comparable from one measured period to the next.
ReplyDelete2. Real GDP = Real Income because it measures economic growth or power and increased economic power is increased purchasing power. Every time one purchases something, every dollar spent is going to someone else as income, whether it is to the workers as wages, the landlords as rent, a bank that has made a loan as interest income, or to the owners of the business as profits. This means that with increased purchasing power comes increased spending and increased income.
3. The income generated by the production of goods and services is dispersed among owners (profits), workers (employee wages), lenders (interest), and lessors (rent).
4. As an average, GDP does not indicate where the economic or income growth is taking place. The middle class is still able to have virtually no real income gains over the last 15 years while the real GDP has been growing over the last 15 years because the economic gains have been going to other socioeconomic classes, particularly those that include higher educated workers.
5. The most important determinants of real GDP growth are the population of workers, quantity of resources, and technological development.
6. As President I would try to give subsidies to companies working for technological development to incentivize companies to research and develop new and better technologies that would increase productivity. I would try to fully access the resources we have around us, such as wind power to make the most of resources. Finally, I would invest in education, both for worker productivity as well as to help people get higher paying jobs. The increased income overall will be reflected, as will the other measures hopefully, in an increased GDP.
1.Real GDP is when the percentage growth comparison is restated for inflation so that the production figures are comparable from one time to the next. Essentially, it is GDP that has been adjusted for inflation or deflation of currency so that the production figures are not impacted by changing price changes.
ReplyDelete2. Real GDP= Real income because it measures economic growth which leads to increased purchasing power. Every time you purchase a good or service, the money you just spent goes to someone else has income. As more things are produced and you buy the increased supply of things, you are giving people in the economy more income through your purchases.
3. The four groups that earn the income generated by the production of goods and services are owners (profits), workers (wages), lenders (interest), and lessors (rent.)
4. While GDP has been increasing, it does not mean that the middle class are the ones necessarily reaping the benefits of this increase. GDP does not tell you where the growth has been taking place. In fact, the income gains in the last fifteen years have gone to skilled and educated workers, meaning that middle class has received none of the income gains.
5. The most important determinants of real GDP growth are increase in natural resource quantity, increase in human resources quality and quantity, increase in quality and quantity of capital resource, and international trade (lead to specialization so businesses can focus on producing a few goods to a high quality instead of all goods to a low quality).
6. If I were president of the United States, I would work to increase Real GDP by using subsidies to make college education more affordable so we can have a better educated work force. I would also create incentives such as tax breaks and exemptions for firms that focus on capital technology production. The last thing I would do to increase Real GDP would be to encourage the use of renewable resources in the use of technology in addition to the current methods of production. By tapping into solar, wind, and hydro-power, we would be fully accessing and using the resources available to us efficiently which would result in an increase in production. These measures would result in a better educated work force, better technology for production, and more resources, which would ultimately all lead to economic growth and an increased real GDP.
1) Real GDP is the value of the entire output produced annually within a country's borders, adjusted for price changes. We hear about real GDP on the news and it is adjusted for inflation so that it is comparable with previous GDP numbers.
ReplyDelete2) Real GDP= Real Income because it measures the economic growth which increases the power to purchase. Each time one buys a good or service, that money is being used to put forth someone’s income: wages, rent, loans, profits, etc. With the increase of the power to purchase comes about with increased spending and income.
3) The four groups who receive income generated by the production of goods and services are workers, landlords, banks, and business owners.
4) Much of the income gains had come to the workers who were skilled and highly educated rather than middle class workers. This means that the middle class workers did not receive the income gains. Although GDP is seen to be increasing, the increases are actually gained by the skilled and educated workers.
5) The most important determinants of real GDP growth are population (increase of this means increased work force), education for the unskilled workers, the amount of resources, and the advancement in technology.
6) As President, to increase real GDP, I would increase funding for those who are uneducated, innovate and advance technology, and create more jobs. I would increase the funding for those who are uneducated so that they can further their studies to get better paying jobs. I would try to innovate and push for the advancement of technology so that the country as a whole can become more efficient in producing more. Lastly, I would create more jobs for the ones that are unskilled in the workforce in hopes of raising the GDP for the middle class.
1. Real GDP is what is reported to the media. The Commerce Department of the government calculates it by comparing the final value of domestic goods and services from the current quarter (3 months) to that of the previous quarter. They then take the quarter-over-quarter percentage gain and multiply by 4, making it annual instead of a quarter. It is then restated to allow for inflation.
ReplyDelete2. Real GDP is equal to Real income because every dollar we spend is a form of income to someone else. A nation’s income at a certain purchasing power buys the goods and services that value GDP. GDP can also be calculated using income or by using expenditures.
3. The four groups that earn the income generated by the production of goods and services are owners, workers, lenders, and lessors.
4. The middle class has made almost no income gains over the past 15 years due to increases in technology. The middle class has stagnated, while the upper class’s incomes have increased drastically. The real GDP shows an increase because of the upper class; the educated and the skilled. This raises the real GDP.
5. The most important determinants of real GDP growth are similar to the determinants for supply. Some include: technology, change in the number of workers, change in education, income, land, capital, natural resources, taxes, and international trade (allowing specialization).
6. As President I would try and increase GDP by providing subsidies to companies involving the gathering of natural resources. This would include those developing technology to become more efficient in finding and collecting them. More natural resources would mean more possibilities for products, allowing more jobs, and a higher income (hypothetically). I would also provide tax cuts/subsidies for education. I would start programs to encourage a higher level of education throughout our country. I would want the public school system to be held to a higher standard, pushing our students to be the best they can possibly be. I would also lower taxes on certain goods. This would allow the sale and production of these goods to rise, allowing more jobs and more income, raising the GDP.
1. Real GDP is taking the nominal GDP and subtracting the inflation rate which is the CPI Index.
ReplyDelete2. Real GDP = Real Income because Real GDP measures the production of goods and services, all expenditures are income for someone else.
3. The four groups that earn the income generated by the production of goods and services are owners, workers, landlords, and renters.
4. GDP only says that the overall economy is growing not how that growth is allocated. Due to globalization there is more competition and it is harder for middle class/working class to compete.
5. The most important determinants of GDP growth are; increase in natural resources, increase in population, technological advancements, and an increase in global trade/specialization.
6. As president I would sign more free trade agreements with other countries. As president I would also ease the rules on immigrants with high skills so they can immigrate to the US easier. I would allow tax breaks for R and D and investment. I would also open up more public lands for fracking.
1. Real GDP is the amount the country’s economy would be predicted to grow in a year adjusted for inflation and based on a quarter. It is the quarter growth rate multiplied by four. The size of the economy is the total of all its final products, or any product that’s final step of manufacturing occurs in the United States.
ReplyDelete2. Real GDP is the same thing as American purchasing power; in fact it is our purchasing power as a country. If it grows faster than the population, stuff gets comparably cheaper because of the Income Effect.
3. All groups get income from the production of goods and services. Workers provide the service of their work, owners provide whatever they are selling good or service, landlords provide housing, which can be both a good and a service, and lenders provide the good of money a person does not have,
4. Real GDP does not show where the money is going. For example, if the rich just keep making more and more money, while the middle class’s income stays constant and everything is adjusted for inflation then the GDP will continue to increase.
5. The most important factors in real GDP growth are population increases and efficacy increases such as better methods or technology. Efficiency is better because it increases standard of living.
6. As president I would subsidize innovation, subsidize education of the workforce, and make it easier to immigrate to the Untied States
1. Real GDP is a calculation of the percentage value from comparing the final value of domestic goods and services in one quarter with the previous quarter. Real GDP is annualized by multiplying the percentage value by 4. The “Read GDP” is the GDP that is reported and covered by the media. It is always reinstated for inflation so that the real GDP throughout periods can be compared.
ReplyDelete2. Real GDP is equal to real income because a percentage that shows an increase in GDP or increase in goods and services also represents the growth in income, which enables the increased purchase in goods and services. For example, in the given example: an increase of the real GDP by 3.9% also means a 3.9% growth in income because in order for the goods and services to increase, the income must increase to purchase those goods and services.
3. The four groups that receive income generated by production of goods and services include workers (as wages), landlords (as rents), banks (as interests), and business owners (as profits).
4. As seen in the previous blog, the middle class’ real income has actually slightly decreased even though the overall real income has increased because the increased income is seen going more to the higher educated. Those who are better educated are the ones who incomes have been increasing, adding to the overall income growth.
5. Since an increase in GDP virtually means an increase in goods and services, the determinants of GDP growth are the same as those determinants which cause an outward shift of the PPC. These determinants include an increase in quantity of resources, improved quality of resources (i.e. better educated workers), and higher technology.
6. If I were president, I could increase GDP growth by promoting better education for workers which would result in a better quality workforce which increases production of goods and services, promote innovation so that newer and higher technology can be invented to maximize productivity, and finally I would call for a larger amount of workers, I would invest in foreign immigrants to add to the work force which would in turn increase the number of goods and services produced.
1.The real GDP is the reported GDP that we hear on the news and see in reports. This GDP is adjusted for inflation. It is a measure of the final value of all goods and services produced within a country.
ReplyDelete2.Real GDP is the purchasing power as a country. If it grows faster than the population, stuff gets cheaper due to the Income Effect.
3.The four groups that earn the income generated by the production of goods and services are owners, landlords, workers, and renters.
4.Much of the income gains go to the workers who were skilled and highly educated rather than the less educated middle class workers. This means that the middle class workers did not receive the income gains. Although GDP is seen to be increasing, the increases are really only gained by the skilled and educated workers.
5.The most important factors in real GDP growth are population increases, technology, and quantity of resources available for usage.
6.As President to increase the GDP of my nation, I would lower taxes, keep interest rates low, and promote the better education of our workers. I would promote the further advancement of our technology to help increase the production output and efficiency.
1. Real Gross Domestic Product is the measure of economic output which is adjusted by prices changes such as inflation. Real GDP is measured in constant dollars, not the current dollar value.
ReplyDelete2. Real GDP is the same thing as Real Income. When the GDP of a country grows, the purchasing power of the people increases. If consumers have more money, they are willing to buy more goods. The demand for goods increases so producers create more, therefore raising GDP. Each dollar spent in the economy is transformed into the income of another individual.
3. The dollars spent are translated into wages for workers, rent for landlords, interest incomes for banks or profits or businesses. Money is moving in a constant circle between different aggregates.
4. Real GDP has increased because of advances in technology and equipment. Newly invented technology is able to produce more output which is why the real GDP is growing. The middle class cannot keep up with this expanding industry so the gap between classes is slowly widening. Also, workers are becoming much more educated so the job market is more competitive.
5. The most important determinants of the real GDP growth are the same determinants that shift a PPC to the left such as increase in resources, highly skilled workers, larger population and technology advances.
6. I think that the most sensible way to increase GDP is to supply the work force with more educated workers. If I were president, I would make education accessible for anyone who is motivated to better their country. If we have smarter and more efficient people creating our goods and performing our services, GDP will increase.
1. Real GDP is the measurement of the money that this country makes relative to the changes in price. Real GDP adjust with the prices making it more accurate. An example of a factor would be inflation.
ReplyDelete2. Real GDP equals real income because the people of this country have more buying power. Now that they have more money flowing in the citizens can spend more ultimately upping the demand for products and the GDP.
3.The four groups that earn the income generated by the production of goods and services are owners, workers, lenders, and lessors.
4. Even though the GDP has been growing that doesn't necessarily mean that it benefits every single class. Demand for jobs is getting high in today's age and the people taking advantage of that are the skilled and upper-class workers. They are making more and more money making the divide between social classes even bigger. GDP doesn't have to be spread out evenly throughout the classes.
5. The most important determinants of Real GDP growth are inflation, demand, , rising wages, advancement in technology, more efficient workers and quality of a countries resources.
6. If I was president the three things I would do to increase economic growth is a. I would try to lesson the gap between all of the social classes especially between the rich and the middle cause I feel like the middle class is very important to a country. b. I would increase the production of goods within the United States c. I would emphasize how important it is to have good schools systems so our kids can come out of school brighter and more innovative than ever before.
Real GDP is the Gross Domestic Product restated for inflation. This is what is reported by the media so that production figures can be compared from one period to the other and are not impacted by changing price levels. GDP is calculated by comparing the final value of the domestic goods produced and services rendered in the present quarter to the final value of the goods produced and services rendered in the preceding quarter. This calculation then takes quarter over quarter percentage gain and is multiplied by 4 to annualize the percentage.
ReplyDeleteReal GDP equals Real Income because it measures the final price of all the final goods and services produced in the borders of our country, which is essentially economic growth--this also increases our purchasing power. Every time we purchase something, the dollars we spend go to someone as income-- in various forms such as wages for workers. It can also be explained as our country’s purchasing power grows, spending and income also increases.
The four groups that earn the income generated by the production of goods and services are: workers (earn wages) , landlords (earn rent), banks (make loans that earn interest income), and owners of businesses (earn profits).
Even if our nation’s middle class has made virtually no real income gains over the last 15 years and our real GDP has been growing over the last 15 years, GDP can still equal income. This is because real GDP or income growth is a collective U.S. average-- it does not show the real income gains based on socioeconomic classes or jobs. Since production technology and labor competition have advanced, the educated and skilled workers benefit the most and thus the GDP increase mostly represents those workers and entrepreneurs, not many from the middle class.
The most important determinants of real GDP growth are quantity of resources, advances in technology, quality of resources (for example:more skilled and productive workers), and increase in natural resources and population.
Three things I would try to do as President to increase Real GDP would be: try to put more money towards education (maybe some towards college education, although having it completely paid for would most likely put the nation in debt), make more advancements in technology so that the highest productivity possible is met, and create more jobs to make our country stand out-- the U.S. will be the most productive and have the most advanced technology, making it the best labor force.
1. Real GDP is the percentage growth comparison restated for inflation so that production figures from one period to another can be compared without the changes in price levels.
ReplyDelete2. Real GDP = Real Income because every dollar someone spends goes to someone else as income. GDP is purchasing power or economic growth, which represents the income growth to purchase the growth in goods and services.
3. The four groups that earn the income generated by the production of goods and services are the workers, owners, lenders, and lessors.
4. The real GDP or income growth rate is the U.S. average, so it is equal in terms of the U.S. as a whole. The increase in real income has been going to the educated and skilled workers instead of the middle class, over the past 15 years.
5. The most important determinants of real GDP growth are natural resource quantity, population, quality of education, technology, and international trade.
6. If I was President to increase real GDP I would try to improve education by encouraging more people to go to college and making it cheaper so that everyone had the ability to go creating more skilled workers, which would lead to improvement in technology. I would create more jobs because more workers mean better efficiency and more goods and services produced. Lastly I would try to encourage more recycling and better uses of all the resources we have to increase the quantity.
ReplyDelete1) Real Gross Domestic Production or GDP for short, is a comparison between the final value of the domestic goods and services rendered in the current quarter to the final value of the goods produced and services rendered in the previous quarter. Also, real GDP happens to be the only kind that is reported by the media.
2) Real GDP equals real income because every time a person buys a product or service, the money used for it goes to someone as income, to a bank, as profit, or many other things. If GDP goes up, then the purchasing power of the average person goes up as well. In term, this means that Real GDP equals real income.
3) The four groups of people who earn the generated income are the workers, the banks, businesses, and the landlords. The workers generally earn wages, the banks will earn interest, the businesses will earn profits, and the landlords will earn rent from their properties.
4) The people that make up our middle class have not had many economic gains over the past 15 years. Why? Because technology and global labor competition are driving it down. Although the real GDP is going up, the increase in income has benefitted the upper class people more, as well as the skilled workers and the higher educated people in society.
5) There are many important determinants of GDP. The prominent determinants would include exports, investments, consumer consumption and spending, as well as government and business expenditures. These are all important determinants of GDP.
6) If I was president, I would first off have people address me as King Josh Romano. On the matter of increasing real GDP, or economic growth, I would first start by cutting taxes. If there are less taxes on things, people can produce more and get more for their money. My second move would be to educate the people of America more effectively, and make college more affordable. A better educated work force means more production. Finally, I would try to increase employment to get more people out there producing things.
1. Real GDP is the percentage growth comparison is always restated for inflation so that the production figures are comparable from one period to the next and are not impacted by changing price levels.
ReplyDelete2. When Real GDP increases real income increases because the purchase power and income also goes up and every dollar someone spends goes to someone else as income
3.There are four groups that earn income generated by the production of goods and services they are: workers, owners, lessors, and lenders
4.Even though the real income has increased the income has been going to the upper class who are the CEOs, owners, and highly skilled workers.
5. The most important determinates of real GDP are natural resource quality, technology, international trade, quality of education and population.
6.As president I would try to make getting a college education easier to obtain, I would try to find more efficient ways to dig up more natural resources, I would try to find ways to create more jobs.
ReplyDelete1. Real GDP is the GDP reported by news and media such as CNN and other sources. This stands for Gross Domestic Product which is reported to the government by each company producing in the United States. It measures the final value of the goods produced in the country.
2. Real GDP= Real Income because money spent equals money earned. When somebody goes to by a product that money results in income for another person. This income is then spent on the goods and services of manufacturers resulting in GDP, thus GDP= real Income. \
3. The four groups that earn the income generated by the production of goods and services are businesses, workers, banks, and landlords.
4. This could be so that our middle class has made no real income because it is mostly going to smart and skilled workers. Our GDP has been steadily going up but the real income from this is not necessarily going to the middle class but educated workers.
5. The most important determinants of real GDP growth are really what a society should have to attain full potential. These determinants are population, technology, income, and education.
6. If I were president, in order to increase GDP I would make higher education more accessible, encourage businesses to produce in the United States, and also encourage Americans to buy from these American businesses. This would raise our GDP by having peoples incomes come from these businesses and these business GDP to come from these incomes.
1. Real GDP, stands for gross domestic product, and is the GDP that we see and hear about in the news. GDP is the measure of the final value of all goods produced and services produced within the borders of our country. Real GDP is adjusted for inflation or deflation so the percentage growth comparison is not affected by changing prices.
ReplyDelete2. Real GDP is equal to Real Income because when someone purchases an item, that money spent becomes an income for another person. Purchasing power is increased thus spending and income is increased.
3. The four groups that earn income generated by the production of goods and services are owners (profits), workers (employee wages), lenders (interest), and lessors (rent).
4. Our nation’s middle class have made virtually no real income gains over the past 15 years because labor competition has rose and technology has taken over their jobs. Our GDP has been growing even with our middle class in this state because the increases in income is going to educated and skilled workers and to the entrepreneurs. This means that the middle class is seeing no income gains, while the upper class is getting all the increases in income.
5. The most important determinants of real GDP growth are the population of the workforce, higher quality education for workers, quantity of resources, and advancement in technology.
6.If I were president one thing that I would do to increase real GDP is make education more affordable and attainable. It is proven that workers that have a higher education have a higher income, so it is only fair that everyone has the same opportunity for education. The second thing that I would do to increase real GDP would be to have more government subsidies for innovators. Having these subsidies would encourage more people to invent new technology thus increasing economic growth. The third thing that I would do as president to increase GDP would be to create a lot of jobs for the unskilled workers to allow them to contribute to the economic growth of our nation.
1. Real GDP is a macroeconomic measurement of the value of economic output and has been deflated or inflated to reflect changes in the price level. It is most commonly reported by the media. It is also calculated by a quarter over quarter percentage gain and multiplied by four to show the annual growth.
ReplyDelete2. When Real GDP grows in percentage Real Income is increased as well because it shows our ability to purchase these domestic final value products. We can view GDP in terms of the income derived or created from producing it. Again, every dollar that we spend is income to someone else thus creating a higher GDP.
3. Four groups that earn income generated by the production of goods and services are the workers who are given their wages, landlords earn rent, banks earn interest from loans, and businesses earn profits.
4. The middle class has been put to a stop when it comes to gaining more Real income because of the ongoing worldwide competition and the numerous advanced technologies. Although the GDP has gone up it shows the massive income gap between the rich and the middle class.
5. The main determinants for real GDP Growth is similar with the increase shift of supply in the Production possibilities curve and they are better resources, productivity, and technology.
6. If I was president the three things that I would do to increase real GDP is to begin with education. If more people were better educated we could see our productivity increase even more and there would be less poor people causing our Real Incomes to increase. Secondly, I would enforce the people to obtain jobs while I tried to create new ones, the more people working the more goods and services we can dish out. Thirdly I would redo taxes by taxing more of the rich and less of the middle class and lesser on the poor because then they can have a little bit more income to spare.
1. Real GDP is the final measurement of the value of the goods and services produced in the United States in a quarter. It is the only GDP reported by the news media. GDP stands for Gross Domestic Product, which is the most important macroeconomic measurement for economic growth.
ReplyDelete2. Real GDP equals Real Income because economic growth allows for more purchasing of goods and services. More goods and services means more spending, meaning more income for those selling those goods and services. Increasing GDP means increasing spending power for the population of a country, promoting economic growth.
3. The four groups that earn income generated by GDP are: owners, workers, lenders, and lessors.
4. The middle class of this nation saw no real income increase over the past 15 years because of advancement in technology. Global labor competition in other countries also contributes to the lack of growth. The two new factors have "put a lid" on the middle-class's real income growth. Most of the income growth is going to highly skilled workers and business owners.
5. The most important aspect of real GDP growth is how the people are themselves. A more productive and efficient society will be able to produce more and better goods and services, thus increasing GDP, and increasing income growth. Higher education, population size, availability of resources, and advances in production technology can be factors in assisting real income growth.
6. As President of the United States, I would do everything in my power to ensure the solid and stable growth of my nation's economy. I would do this by enabling more people to acquire the skills needed to make a more productive society. Offering higher education, as well as teaching important and demanded skills to the general population would allow those people to work more efficiently. I would encourage entrepreneurs to rise and establish their own businesses, which would stimulate the economy by selling and exporting more goods and services. Finally, I would invest in research that would result in more efficient manufacturing methods. The more efficient our production lines are, the more goods and services we can provide to those willing to buy them. More supply results in more availability in sales, increasing income, thus increasing real GDP and promoting economic growth.
1.Real GDP is the measure of the final value of goods and services produced during the current quarter, divided by the final value of the previous quarter, and multiplied by four. The values are always recalculated in regard to inflation to ensure accuracy. GDP stands for Gross Domestic Product.
ReplyDelete2.Real GDP equals real income due to the fact that when a consumer purchases a good or service, the money that they used to purchase it always ends up back in the hands of the owner, workers, landlord, etc. In short, the money that you spend always finds its way back to the people who created the good or service, which in turn increases their income.
3.The four groups that end up with the income generated from the production of goods and services are landlords, banks, workers, and business owners.
4.Over the last 15 years, our real GDP, and real income, have grown due to the accumulated income going to the higher class of educated and skilled workers. This does not show on the real GDP measurement because there is no way to distinguish which classes receive the largest growth in the real GDP measurement statistic.
5.The most important factors regarding the real GDP growth include an increased number of people in the workforce, an improvement in technology, and more or more efficient use of resources.
6.As President, I would do several things to increase real GDP. First, I would encourage spending and purchase of goods and services from all who were able. I would also work to improve our nation’s education, in order to improve the quality of our future workforce and technology. Finally, I would work to lower taxes and increase subsidies on certain goods or services in which regulation or a boost was needed.
1. Real GDP is when the percentage growth comparison is restated for inflation so the production figures are comparable from one period to the next and are not impacted by changing price levels.
ReplyDelete2. Every dollar that is spent on production is going to a person in the form of income. The persons can either be workers, landlords, backs, or businesses.
3. The income can be wages for workers, rent for landlords, interest for banks, or profits for businesses.
4. The rise in GDP is mostly due to the upper class. The middle class has little to no importance in the rise of the GDP.
5. The most important determinants of real GDP growth are land, labor, and capital, which are all used to make products that influence GDP.
6. If I was president I would increase our education system so there are more educated workers who can raise the GDP, I would build more facilities in the United States, and finally I would create more jobs so more workers could produce more goods and raise the GDP.
1.Real GDP is the market value of all final goods and services produced in a year adjusted for inflation so that accurate comparisons may be made between different years.
ReplyDelete2. If the final value of the goods and services of a country increases, then so does the income of the country’s citizens. When the value of products goes up, the price of them increases. Therefore, more money is paid to the people who provide the product. This is their income. So the step-by-step breakdown reveals that as the real GDP rises, so does real income.
3. Money is paid to people in four different ways. It switches hands in the forms of wages, rent, interest and profits. Respectively, the people that receive this money are workers, landlords, banks, and owners of businesses. The owners, workers, lessors, and lenders get all the money.
4. Just because the GDP has been growing consistently over recent years does not mean that the income of the average person is growing. In reality, there is a larger gap between the rich and poor because of education. Those with a quality education are getting paid a lot more than those with little education. Therefore, the GDP is rising mostly because of the higher classes.
5. An overall larger number and more quantities of goods and services increase real GDP growth. With more and better, the production possibilities curve shifts to the right. This involves improved technology, as well as better education. Another important factor is employment. With full employment, the economy is on the production possibilities curve and not under-producing, like it would be if it was inside the curve.
6. Describe three things you would try to do as President to increase Real GDP (economic growth). If I was President I would try to lower unemployment so that there would be better productivity. Hopefully I would accomplish this if I took away unemployment benefits that too many people take for granted. Also, I would attempt to increase the quality of education in America by promoting scholarship programs for less-fortunate kids and increasing educational grants. The laissez-faire economic principle of “hands-off” might help the economy, too. With very little government involvement in the economy I feel that issues would work themselves out and healthy competition would increase.
Real GDP stands for Gross Domestic Product, this means that any final product produced is counted for in dollar values. These product determine the inflation or deflation of the country's currency. Each product made in a business is determined quarterly.
ReplyDeleteGDP and/or income growth rate is a collective U.S average. This does not indicate how real income gains are accrued. Since they are the same, every dollar value comes from someone else's income. Every new product sold is given to GDP and to someone else's income, a product cannot be resold for it to enter back into GDP.
The income that is generated by the production of goods and services goes to four different groups, owners, workers, landlords, and renters.
Even though the income and GDP are rising it doesn't mean that the income for middle class will rise higher than the rest. The highly skilled and the educated have received income gains unlike the middle class.
I think the most important determinates in GDP growth are technological advances, highly educated labor, consumer consumption and spending.
As president i believe that creating a system where increasing better education so that we could have a labor force that is highly trained would be sufficient in GDP. I would also encourage business to invest in better technology and help the technology business’ to create better tech. As president i would also look at the gap between the middle class and the upper class. With less of a gap the GDP would rise and and income would rise for the middle class.
1. Real GDP is the percentage growth from the media that is restated for inflation so the production figures can be compared from another GDP percentage and isn't impacted by changing price levels.
ReplyDelete2. The Real GDP is the calculation of all the production we do in the U.S. So in other words, it shows us every dollar as a result for these products produced. The real GDP = Real income because everything in the real income is a result from the production which is counted in the real GDP. The money from the product is then given to someone weather it be a worker, landowner, or entrepreneur.
3. The four groups that earn income through GDP are workers, entrepreneurs, landowners, and bankers/investors.
4. The middle class is receiving virtually no income gains because all the gains are going to the upper class. This is because most people are educated, so the middle class does not benefit from all the new technology and economical growth like those who are educated and receiving most of the money distributed in GDP.
5. The most important aspect of real GDP growth is from technological advances, population growth, and education.
6. As president, I would do a number or things to help GDP grow. My number one thing to do would be making it easier for Americans to get the higher level education needed to help our economy become successful. I would try to increase the production of products for American companies to produce their products in America. Lastly, I would try to increase our exports and try to have as many of the products we import, made in the U.S.
1. Real GDP is the comparison of the final value of domestic goods produced and services rendered in the current quarter and the final value of the goods produced and services rendered in the previous quarter. This percentage growth comparison is restated for inflation in order to compare production figures from one period to the next without the impact by changing price levels.
ReplyDelete2. If our country’s purchasing power (real GDP) grows by a certain percentage (3.9%), then that also represents the income growth to purchase the increasing percentage (3.9%) increase in goods and services. All money we spend on final goods and services produced goes to someone as income, whether it is as wages of profit.
3. Owners (profits), workers (wages), lenders (interest), and lessors (rent) earn the income generated by the production of goods and services.
4. Even though our GDP equals Income and our real GDP has been growing, the middle class have made virtually no real income gains over the last 15 years because most of the gains in GDP/ real income is going to the educated and skilled workers, which results in higher income inequality. Real income gains of the middle class have stalled and slightly declined because global labor competition and technology both “put a lid” on their real income growth.
5. Some of the most important determinants of real GDP growth are increases in the quality and quantity of supplies and technological advances.
6. In order to increase economic growth, I would consider limiting government regulations on businesses so that they may have more economic freedom. In addition, I might offer incentives (like scholarships) to those students interested in a technological field in order to increase our chances of technological advancement. Lastly, I could push for focusing our resources in capital goods so that we could produce more and better consumer goods in the future, thus achieving economic growth (production possibilities curve shifts to the right).
1. What is real GDP?
ReplyDeleteReal GDP is that the percentage growth comparison which is always restated for inflation so that the production figures are comparable from one period to the next and are not impacted by changing price levels. The calculation takes the quarter-over-quarter percentage gain and annualizes the percentage by multiplying by 4.
2. Why does Real GDP = Real Income?
Real GDP equals Real Income because real GDP is another way to say real Income. If the real GDP was 3.9% that means our purchasing power grew by 3.9%. That being said, it also represents the income growth to purchase the increasing 3.9% increase in goods and services. Every dollar I spend ends up being someone's income, so they are equal.
3. Which four groups earn the income generated by the production of goods and services?
The four groups that earn the income are owners, workers, lenders and lessors. That is profit, employee wages, interest and rent, respectively.
4. Many analyses show that our nation's middle class have made virtually no real income gains over the last 15 years. How could this be so if GDP = Income and our real GDP has been growing over the last 15 years?
Most of the 3.9% is going to the educated and highly-skilled workers and to the owners. The real income gains of the middle class have sort of declined lately because of global labor competition and technology combined capped their real income growth.
5. What are the most important determinants of real GDP growth? Hint: we learned this when we studied the Productions Possibilities Curve.
The determinants of real GDP growth are more and better resources. So an increase in land, labor, capital and entrepreneurs. This could happen with better education, new, fast technology and faster, more efficient production methods.
6. Describe three things you would try to do as President to increase Real GDP (economic growth).
If I was president, I would increase the GDP by making education more important and efficient. This would help the labor force immensely and would increase production. I could also focus on emerging technologies and advance the way things are built, cheaper but better quality. The third thing I could do would either be 'recruit' or higher more, skilled workers from foreign countries or find better ways to make production speedier.
1. Real GDP is the calculation that measures the market value of all the final goods and services produced within the border of our country. Real GDP is restated to deal with inflation so that changes in prices do not skew the results.
ReplyDelete2. Real GDP = Real Income because when GDP grows, another way to say this is that purchasing power increases for the population. When your purchasing power increases and you spend more money, this money always ends up as income for someone.
3. The four groups that earn the income generated by the production of goods are the workers (wages), landlords (rent), banks (interest), and business owners (profits).
4. It is true that our GDP as a nation has been growing and, therefore, our income has been growing as well. But this statement really only applies to the upper class. Global labor competition and technology have nearly shut the middle class out from making large gains in income. We say our nation’s income is growing because our growth rate is an average that the middle class gets swept up in.
5. The most important determinants of real GDP growth are an increase in quantity of natural resources, and increase in quantity and quality workers, and increase in quantity and quality of capital resources (technology), and an increase in International Trade which leads to global specialization.
6. If I were president, I would probably make more and better trade deals with other countries in order to increase international trade, create scholarship opportunities so that we can raise our college education attainment rate, and finally, I would try to make more efficient use of our natural resources, for example, those in Alaska.
1. Read GDP (Gross Domestic Product) is the amount a nation produces in dollar value over a period of three months or quarterly. Whatever the product might be, it has to be produces in the borders of that country, the firm or business can be internationally founded though.
ReplyDelete2. GDP= Income because it is measured over a period of three months and then is multiplied by four. That number is then adjusted for inflation. Whenever a product is sold, it goes into the GDP as well has that spent money going into the pocket of the producer.
3. Income is given to four different groups workers, land lords, lender and entrepreneurs.
4. While GDP is growing in the nation, the middle class is not getting better. This is because GDP does not account for social call and all the income is going to the education individual who has the high paying job. In addition, global competition has taken jobs out of the United State and therefore away from the middle class. Technology has also hurt the middle class because the factory jobs are now being done by robots.
5. The most important determinate in GDP are technological advances, full employment, and high educated labor.
6. If I were president and tasked with increasing the United States GDP, I would do three things. First, give foreign firms tax breaks as to encourage them to set up factories in the United States. Second, raise the minimum wage to $13 an hour, this would encourage more spending in the lower class and middle class. Third, I would make all public college free so lower income students will have the education to get better jobs.
1. Real GDP is the total amount of domestic products in the final quarter divided by the previous quarter and adjusted for inflation. It is a measure of final value, not any other.
ReplyDelete2. Real income is equal to real GDP they both go up due to purchase power. More purchase power means more income, and more purchasing of products.
3. The four groups include: workers, landlords, banks, and businesses. They all earn income due to the production of goods and services in different ways.
4. This is because of advances in technology and the replacement of middle class workers. As automation gains popularity manual labor loses it. The real income is going up because the upper class is getting richer due to more educated workers.
5. Determinants of GDP: Population, quality of workers, resources, technology, and trade.
6. Three things I would do to increase GDP as president would start with improving education. As mentioned in question 4, education in important to the economy. The other things I would focus on would be increasing the advancements in technology to improve efficiency and also create new jobs for unemployed citizens.
1. Real GDP is a calculation that compares the final value of the domestic goods produced and services rendered in the current quarter to those rendered in the previous quarter. The quarter over quarter percentage gain is calculated and annualized by multiplying by four. This comparison is restated for inflation so that the production figures are comparable from one period to the next.
ReplyDelete2. Real GDP = Real Income because this represents the gains in purchasing power. Every time a consumer purchases something, that dollar goes to someone as a wage, profit, interest, or rent.
3. The four groups that earn the income generated by the production of goods and services are owners, workers, lenders, and lessors.
4. The middle class has made virtually no real income gains over the last 15 years because the people making the gains are the higher educated, skilled workers, and owners (entrepreneurs).
5. The most important detriments of real GDP growth are technology, resources, and skilled workers.
6. As President, to increase Real GDP I would increase the skill of the work force, reduce interest rates, and increase wages.
1. Read GDP is Gross Domestic Product that is adjusted for inflation so that production numbers are comparable when measured from one period to another.
ReplyDelete2. Real GDP=Real Income because it measures economic growth which can lead to more purchasing power. Every time you spend money, it goes to another vender as their income and whenever someone buys your product, it becomes your income. From this comes increased spending power and income for yourself and other sellers.
3. The four groups that earn the income generated by the production of goods and services are: Lessors (rent), workers (their payroll), lenders (Interest) and owners (their profits).
4. The middle class could have made virtually no real income gains over the last 15 years because most of the gains have gone to higher class people, more educated people and harder workers. So, yes, GDP is rising but it is going to those who are more educated and more skilled.
5. The most important determinants of real GDP growth are increase in quantity of natural resources, quality and quantity of capital resource, human resources and international trade. These all benefit our market and are the main determinants of real GDP.
6. If I were president, the first thing I would do to increase real GDP is to focus more on educating our youth. Today’s youth is tomorrows adults and we need to make sure that they are receiving high enough quality education to ensure that the United States can stay equal to or above other countries when it comes to GDP. The next thing I would do is inform everyone on the benefits of international trade and speculation. Most people (I know I didn’t) don’t know that buying international products create a presence of competition in the United States which makes us work harder and create better products so we can compete with foreign markets. Lastly, I would work to improve our technology in America to increase manufacturing and production so we can focus more on the products we are skilled at making and we can remain a powerhouse in the international markets, which will, in turn, benefit ours and raise GDP.
1. Real GDP is the final value of domestic goods produced and services rendered in a specific country at a certain time. This calculation takes the percentage gain and annualizes the percentage by multiplying by 4 and is then reevaluated for inflation.
ReplyDelete2. Real GDP = Real Income because every time a good is purchased, the money spent is transferred to someone as income. Other than calculating the GDP in final market value, the real GDP can be calculated by the income method which focuses on real income. Therefore real GDP and Real Income equal each other.
3. Workers, landlords, banks and owners earn the income generated by the production of goods and services.
4. Our nation's middle class have made virtually no real income gains over the last 15 years. This is possible even though our real GDP has been growing because GDP s a collective U.S. average. This means the GDP does not focus on the middle class but all classes and would not display how the middle class has made no real income gains.
5. The most important determinants of real GDP growth are resources including better and more labor, land or more natural resources and more advanced technology.
6. If I were president, in order to increase Real GDP, 1. I would put as many people to work as possible with government programs because when people have steady income they will by more and increase GDP. 2. I would make these government programs be projects working towards better technology so more goods can be produced. 3. I would use all of our natural resources to the best of our abilities and make sure not to waste anything so we can produce more with what we have.
1. Real GDP is simply GDP adjusted for inflation. GDP measures the dollar value of all the goods and services produced within a country in a year. Real GDP is a more useful measurement than nominal GDP because it accounts for the changing value of a dollar over time. Real GDP is often reported as a percentage growth.
ReplyDelete2. Real GDP is the same as real income because the expenditures used in the calculation of GDP are income to the people receiving them. If a consumer spends $1 on a good, then the supplier will gain an income of $1. Income can be in the form of wages, rent, interest payments, or profits.
3. Workers earn part of the income in the form of wages. Lenders earn part of the income in the form of interest. Business owners earn part of the income in the form of profits. Finally, lessors earn part of the income in the form of rent.
4. The growth in GDP has not been distributed equally. Most of the gains in GDP are going to the more educated workers and to the owners. The growth in the real income of the middle class has been hindered by increased competition and technology.
5. The most important determinants of GDP growth are increases in the quality and quantity of production resources. These grow the economy and will shift the PPC to the right.
6. First, I would try to reduce government-imposed barriers to production so businesses would not have as much incentive to outsource jobs. Outsourced production is by definition not made in the US, so if these were brought back into the US, they would boost GDP. Second, I would lower taxes in the hopes that this would encourage people to enter into business and invest more, boosting GDP. Finally, I would redirect government spending from welfare and social security to research and development. This would hopefully boost GDP in two ways: it would increase government purchases and result in the discovery of better resources.
1. GDP stands for Gross Domestic Product. It is the measurement economic output for a quarter that is adjusted for inflation and is compared to the previous quarter.
ReplyDelete2. Real GDP equals real income because as it grows, so does our country's purchasing power. This means that we have the opportunity to pay for more goods and services, and this becomes income for someone else.
3. The Four groups that earn the income generated by the production of goods and services are owners, lessors, lenders, and workers.
4. Income gains in the past 15 years have gone to skilled and educated workers, so the middle class is not getting the income gains even though the GDP is increasing.
5. The most important determinants of real GDP growth are increases in technology, population of workers, and better resource.
6. As President, I would work to improve education within the country so that there are a lot more skilled and educated workers. I would also increase international trade and focus on improvements in new technologies to improve our products.
1. Real Gross Domestic Product (GDP) is the percentage growth comparison of the final value of the domestic goods produced and services rendered in the current quarter to the final value of the goods produced and services rendered from the previous quarter. To find the annual real GDP, this quarterly percentage is multiplied by 4. These comparisons are always restated for inflation so that the production figures are comparable from one quarter to the next and not impacted by price change. This GDP is the only one released to the media to avoid confusion to the average citizen.
ReplyDelete2. Real GDP is equivalent to real income because every dollar that is spent on goods and services is income to the owner or supplier of the good or service that is being purchased. If the goods produced and services rendered increase in the U.S., then the owners and workers will receive more income thus allowing them to purchase more of the increased quantities of goods and services that they might need.
3. The four groups that earn the income generated by the production of goods and services are workers (wages), landowners (rent), banks/lenders (interest on loans), and owners of businesses (profits).
4. Despite the growth of real GDP in the last 15 years, the middle class has seen virtually no income gains within that period. The reason for this is that the real income is not dispersed evenly between all those who receive a portion of the real income. The middle class is made up of mostly workers, landlords, a few owners, and a handful of lenders. Income is primarily given to educated and skilled workers and owners of businesses. In addition to the uneven distribution of income, global labor competition and technology are slowly taking over small jobs and labor from human workers. As a result, more workers are out of a job or their incomes are lower due to their ease of disposal.
5. The most important determinants of real GDP growth are the quantity and quality of natural resources, technological advances, and the supply of educated and skilled workers.
6. As president, one thing I would do to increase real GDP is increase the standards and curriculum required for college degrees to improve the education of students as the value of possessing a college degree is gradually decreasing. Another thing I would do is offer tax reductions to or decrease taxes for foreign countries to produce in the U.S. to promote building of factories, warehouses, and other production buildings in the U.S. A third thing I would do to increase real GDP is implement policies on imports and exports to increase exports to allow for an increase in imports and benefit the real income at the same time.
1. Real GDP is GDP that is adjusted for inflation. If we measured the amount of product that we produced each year in the current dollar value it would differ majorly as the value of the dollar has not stayed consistent over the years. We would see a much high percentage increase which would not accurately represent our growth. To avoid this economists adjust the GDP based on inflation levels so that we can compare our growth over the years without any confusion.
ReplyDelete2. Real GDP equals Real Income because every dollar than an American spends on a product turns into someone else’s income. The only way to get income is too have a job of some sort so you are producing a good or service thus adding to the GDP and the Income.
3. The four groups that receive the income that is generated by the production of goods and services are the owners get profits; the workers who are paid wages; lenders who earn interest and landlords who get money from rent.
4. While GDP has increased it does not mean that the benefits have been equally distributed to everyone in the country. Income growth often is received by higher class and educated citizens who have higher paying jobs. Also companies are the ones who receive a lot of the increased income and they then re-invest this into their own company to make it better. This means that the lower and middle income households are left behind with their normal income and this is why they haven’t made any serious economic gains. This is all due to the uneven distribution of the growing incomes.
5. Some of the most important determinants of GDP are things like production technology as this affects what and how efficiently a country can produce certain items. Land, Labor and Capital are all things that can affect the GDP of a country. The quantity and quality of these items is very important and affects how much a country can produce. Global trade and specialization also affect the GDP of a country as if they utilize trade efficiently then they can export goods to make more money and thus increase their GDP.
6. As President one of my main goals would be to increase the education of the people so that they are more capable to get a higher paying job and to be more productive than they may have been before. This will help to increase the country’s GDP and it will help to improve the living standards of low and middle income families. Education will not only increase productivity but it could help to nurture creativity and make new entrepreneurs who could create new products which would further boost the GDP.
I would also increase trade between the USA and other countries around the world. In addition to other countries coming to us to meet their needs, we would also go to countries less economically developed and see what they are in need of and if we can produce that in a way where a profit is still profitable. This will increase our trade and thus GDP and allow us to help countries that are not as developed as much.
I would also try to attract foreign workers so that our work force could be increased and that we could receive new talent that may be undiscovered. This could create new entrepreneurs and increase our work force thus increasing our production and consequently our GDP.
1. "Real GDP" is the annualized growth rate of GDP that is restated for inflation so that it can be compared to other time periods without being influenced by changing price levels. "Real GDP" can be found by taking the quarter-over-quarter percentage gain and multiplying it by 4 to get the annualized percentage.
ReplyDelete2. Real GDP = real income because every dollar one spends on a good or service goes into someone's income, whether it be as wages, rent, interest income, or profits.
3. Owners, workers, lenders, and lessors are the four groups that earn the income generated by the production of goods and services.
4. Our nation's middle class virtually made no real income gains over the last 15 years because most of the 3.9% increase in incomes has gone to the educated and skilled workers and the entrepreneurs.
5. The most important determinants of GDP growth are the quality and quantity of resources, advances in international trade, the population, and the education of the workers.
6. If I was the President I wanted to increase real GDP, I would do this by trying to spread better education throughout the nation, improve international trade so that more countries will open factories in the nation, and raise the wages of workers.
1. The real GDP is the GDP that we hear on financial networks and websites. The “Real” GDP is accommodating inflation and is the actual value of all the US goods and services at that point in time. GDP is short for Gross Domestic Product.
ReplyDelete2. GDP not only measures expenditures, but also income. Every Time an American purchases a product, it transfers that income to selling party and adds to the GDP. Since it is a measure of the buying power of an entire nation, Real income would equal real GDP.
3. The four groups that receive income from goods and services are the workers themselves, banks, business owners, and landlords.
4.There has been no income gains for the middle class because the educated working force has become so advanced; this just means that those receiving an education continue to climb higher up the income ladder. The higher the educated workforce gets paid, the higher the average becomes, leaving uneducated workers in the dust.
5. The most important determinants of GDP are technology, change in the number of workers, change in the education level of the workforce, taxes, natural resources, and international trade. This is very similar to the determinants of the supply curve.
6. The biggest thing I could do if I was president would be improve education in America.If you payed teachers like doctors and you would see an exponential growth in the quality of the workforce. I would not make it easier to go to college; as that defeats the purpose of improving education, rather I would improve the quality of instruction. Also, I would probably subsidies companies that pursue and develop new methods of energy, created more jobs in that field and helping the environment at the same time. Finally, I would probably look to cut unemployment to as little as possible, doing so through public work programs and better access to trade schools.
1. Real GDP is the GDP whose percentage is adjusted so it can compare to the previous quarter. It takes the the previous quarter over the current quarter and multiplies by 4. This is the primary GDP that is reported.
ReplyDelete2. Real GDP is also Real Income because our GDP is also our purchasing power. As our GDP goes up, it means that we purchased more goods. In order for us to have purchased more goods, our wages had to of gone up.
3. There are 4 groups that receive the income. The Owners, the Workers, the Lenders, and the Landlords.
4. The reason the Middle class has stalled, is because most of the income gains have gone to educated and skilled workers.
5. Some big factors for GDP include our technology, the size of our workforce, the level of our workers, and the resources available to us for products.
6. If I was president, I would give tax breaks to the larger corporations so they can pay high wages and make more products. I would also make schooling more affordable. I would also give tax breaks to corporations and universities that create new and advanced Technologies, so they can further advance our GDP.
1. Real GDP is the quarter over quarter calculation of percentage gain in GDP, which is then annualized and then restated for inflation. This is the GDP which we hear about on the news, they just take out the word "real" so as to not confuse the average citizen.
ReplyDelete2. Real GDP equals Real Income because each time we spend a dollar, that dollar that we spent becomes someone else's income whether it be the workers, land lords, or businesses. The more we spend the higher the incomes are of those people whom we are giving our money too, this also results in an increase in our GDP since income is used to calculate GDP.
3. The four groups that recieve income are: workers, landlords, banks, and business owners.
4. The reason that the middle class has virtually no income gains is because they are over shadowed by educated workers. The educated workers are the ones who are receiving the higher incomes, thus leaving the middle class workers without them.
5. The determinants of GDP growth are: increase in resources, increase in workers, increase in education of workers, and increase in international trade, and advances in technology.
6. If I was president I would put as much resources and money towards technology resources. Advances in technology would result in a more efficient way to create products thus increasing our GDP.
1. Real GDP is the percentage of the GDP, which is later adjusted to compare it with previous quarter’s GDP's. The percentage is then multiplied by 4 and the percentage is always restated for inflation so the figures are comparable from one period to the next.
ReplyDelete2. Real GDP equals Real Income because every time a person spends a dollar, that dollar goes to someone else’s income, whether it be wages, rent, interest, or profits.
3. The four groups who receive income generated by the production of goods and services are workers, landlords, banks, and business owners.
4. The reason our nation’s middle class has made virtually no real income gains in the past 15 years is because the educated and higher skilled workers are receiving a higher income, thus overshadowing the middle class. These are the people who have a higher income, not the middle class.
5. The most important determinants of GDP growth are increases in resources, increases in workers, increase in education workers, increase in international trade, and advances in technology
6. If I were president, I would make sure everyone was able to get a higher education. This would increase each person’s income, could lead to technological advances, and would create a higher quality workforce. All of these would increase the nation’s GDP.
1. Real GDP is the calculation that compares the final GDP of the current quarter tho the GDP of the previous quarter. This it is calculated and annualized by multiplying it by four. Lastly it is restated for inflation. Real GDP is the GDP we hear about on the news, but the word "real" is taken out to avoid confusion among average citizens.
ReplyDelete2. Real GDP = Real Income because it measures economic power and increased economic power means increased purchasing power. Every time we spend a dollar, it goes towards someone's income (workers, land lords, businesses). So the more we spend the higher people's total incomes are going to be.
3. Businesses, landlords, workers, and banks are the four groups that earn the income generated by the production of goods and services.
4. An increase in GDP does not mean the money people spend goes to the middle class. The people gaining income are the educated, higher skilled workers, and business owners.
5. Determinants of GDP are increase in workers, increase in resources, increase in national trade, and quality of education for workers.
6. If I were president, I would either try to create more jobs or increase worker productivity. I would also try to keep income taxes low and create new innovative technology.
1. Real GDP is the calculation that compares the final GDP of the current quarter tho the GDP of the previous quarter. This it is calculated and annualized by multiplying it by four. Lastly it is restated for inflation. Real GDP is the GDP we hear about on the news, but the word "real" is taken out to avoid confusion among average citizens.
ReplyDelete2. Real GDP = Real Income because it measures economic power and increased economic power means increased purchasing power. Every time we spend a dollar, it goes towards someone's income (workers, land lords, businesses). So the more we spend the higher people's total incomes are going to be.
3. Businesses, landlords, workers, and banks are the four groups that earn the income generated by the production of goods and services.
4. An increase in GDP does not mean the money people spend goes to the middle class. The people gaining income are the educated, higher skilled workers, and business owners.
5. Determinants of GDP are increase in workers, increase in resources, increase in national trade, and quality of education for workers.
6. If I were president, I would either try to create more jobs or increase worker productivity. I would also try to keep income taxes low and create new innovative technology.
1. When compared to the figures of the previous quarter, Real GDP is adjusted by inflation.This is the only type of GDP released by the media.
ReplyDelete2. Real GDP equals Real income because of relationship between buyers and services leads to an appreciation (or if lack of, depreciation) of the dollar. Every time that person utilizes the dollar to make a purchase, it contributes to the economy.
3. The four groups are : workers, landlords, owners, renters.
4. The growing GDP does not necessarily apply to a stronger middle class- as income rises, prices for goods and services also rise. As the blog post states, new technology and the increasing skill in workers has contributed to a much larger economically competitive nature.
5. The most important determinants of real GDP growth include: advances in technology, change in number and skill level of labor, and the quality/quantity of resources (natural).
6. In current society, many people (especially the middle class) find being in an "economical and income rut" is a major issue. By this I mean, many people believe that they are stuck in their current state- no matter how hard they work, they have to pay the same bills, receive the same income, and pay the same taxes. I understand the frustration- but I do not see a world where everyone can be rich and successful. However, what we can do, is increase the levels of innovation in our country, a step that would surely benefit those who wish to utilize their minds to become more successful. Another big factor in the growing economy of America is education. There are hundreds of thousands of bright minds in the United States who cannot afford the type of education they deserve. If we make education more accessible, the future payoff would be invaluable to our society.
1. Real GDP stands for Gross Domestic Product, it is the measure of of one time period of GDP compared to a previous time period.
ReplyDelete2. When we buy products it increases people's Real Income. The Real Income has a direct relation with Real GDP. GDP measures income and expenditures and it increases the spending power of a country.
3. Banks, Bussiness Owners, workers, and landowners are the four groups that earn the income generated by the production of goods and services.
4. The amount of highly educated workers has increased dramatically and people tend to hire those who are more educated and skilled becasue they often do the job better than a non-educated worker. These non-educated workers make up the middle class which is why they have made virtually no income gains in the last 15 years.
5. The quality and quantity of natural resources, amount of educated workers, and increases in technology are the most important determinants of real GDP growth.
6. If I were president and I wanted to increase real GDP I would try to increase the educated work force, put more emphasis on the field of technology to increase efficiency and have more international trade.
1. Real GDP is the percent growth between the prior and current quarters. It is adjusted for inflation and multiplied by 4 to annualize it. It's also the GDP reported by the media, and what most people think of when they hear GDP.
ReplyDelete2. Real GDP is equivalent to Real Income because when goods and services are produced, someone is paying for those goods and services. The payments of consumers are incomes to producers. It’s the same value.
3. Wages go to workers, rent goes to landlords, interest goes to banks, and profits go to businesses. The only question is how the incomes are dispersed to the various beneficiaries.
4. GDP is a collective average of national economic growth. The wealthy and educated have been growing in real income rapidly, thus bringing up the GDP. Even if the real income of the poor and middle class was decreasing, it could still appear on the surface that everyone’s real income was growing by just looking at a positive GDP.
5. The most important determinates of GDP growth are technological advances, population growth, and increased amount of resources.
6. As president I would advocate and push for technological development and research. I would also call for more money for education/research grants. I would finally try to tap more into the natural resources available to us in the United States. Those three things should lead to an increase in GDP.
1. Real GDP is the percentage growth comparison always restated for inflation so that the production figures are comparable from one period to the next and are not impacted by changing price levels. Real GDP is the only GDP reported by the media
ReplyDelete2. Real GDP equals Real Income because every time you purchase something, the money you spend is going to someone as income.
3. Workers, landlords, banks, and business owners are the four groups that earn the income generated by the production of goods and services.
4. This is so because our real GDP reflects on our nation as a whole. It doesn’t just reflect the middle class. The middle class may have had virtually no income gains over the last 15 years, but the upper class and the elite have. The middle class may be losing jobs but they are losing these jobs to higher skilled workers and businesses that develop technological advances. Our GDP has been growing while the middle class has had no real income because the upper class is still thriving and benefiting while the middle class “suffers”.
5. the most important determinants of real GDP growth are technological developments and advances, population increases, and resource quantity.
6. If I was president, the first step I would take to increase Real GDP would be to improve and expand education. If more workers were better educated and had a higher skill set than our country would thrive. The workers from the middle class who negatively affected our Real GDP would be improved and the unemployment rate would decrease due to it. The next two steps I would take to increase Real GDP would be to support more technological developments and advances and to increase and improve trade.
1) Real GDP is the calculated form of the Gross Domestic Production. It compare the final goods and services at the end of a quarter and the final goods and services from the previous quarter. Then, to find the annual gain, the quarterly percentage is multiplied by four and restated for inflation.
ReplyDelete2. Real GDP equals the real income because every dollar spent by a consumer is income to a worker. It does not calculate who receives the income, but it does show the overall income calculation and displays growth.
3) The four groups that earn income are the workers who receive wages, land lords who are payed rent, banks who make loans and receive interest income, and business owners from their profits.
4) There is a significant increase in income in the US, but it is unequal throughout the classes. The main increase in income occurs in the educated and skilled upper class, not in the middle class.
5) The most important determinants of GDP growth are the determinants of supply. These include; resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number of sellers in the market.
6) As president, I would minimize use of price ceilings and floors, increase funding in technological research to promote advances in technology, and minimize subsidies to businesses. This would increase GDP because the most resources would be utilized.
1. The Real GDP of a nation is the worth of goods and services provided and purchased within the nation over a specific length of time.
ReplyDelete2. Real GDP is dependent on Real Income because the things that are purchased that make up the GDP must be bought, and you cannot buy things without income. Therefore, the increase in GDP is directly linked to the increase of income because you need an increase in income for any increases in GDP because without the increase in income the people could not purchase anything more.
3. The four groups that earn the income generated by the production of goods and services are the workers, the banks, businesses, and landlords.
4. The income may be in the upper classes and lower classes; the Real Income doesn’t necessarily have to be equal across all the classes. Also, it could mean that the middle class is expanding.
5. The most important determinants of real GDP growth are population of the work force, education of the work force, the amount of resources available to build goods and provide the services that make up the GDP, and advancements in technology.
6. If I were the president and I needed to increase the GDP I would try to create more jobs to increase the workforce, focus on reducing the taxes imposed on the people to take less of their wages so that they can spend that money on goods and services, shuffle some money within the government to increase the money available to the U.S. Education system so help educate the workforce more, and probably provide a few extra government subsidies to companies to lower the prices of the goods and services to hopefully lower the price and assist the people in purchasing the goods and services that affect GDP.
1. Real GDP is the percentage growth comparison always restated for inflation so that the production figures are comparable from one period to the next and are not impacted by changing price levels. Real GDP is the only GDP reported by the media.
ReplyDelete2. Real GDP is equivalent to Real Income because when goods and services are produced, someone is paying for those goods and services. The payments of consumers are incomes to producers. It’s the same value.
3. There are 4 groups that receive the income. The Owners, the Workers, the Lenders, and the Landlords.
4. The middle class could have made virtually no real income gains over the last 15 years because most of the gains have gone to higher class people, more educated people and harder workers. So, yes, GDP is rising but it is going to those who are more educated and more skilled.
5. The main determinants for real GDP Growth is similar with the increase shift of supply in the Production possibilities curve and they are better resources, productivity, and technology.
6. As President, to increase Real GDP I would increase the skill of the work force, reduce interest rates, and increase wages.
1. The Real GDP is the value of the goods and services in the country as estimated by the Federal Commerce Department.
ReplyDelete2. Real GDP=Real Income because every dollar spent is going to a business or person as income, profit, or interest that they will be able to spend.
3. The 4 groups who earn the money are owners, workers, lessors, and lenders.
4. Although the middle class may not be making gains, the upper class has been making great gains causing the income gap has been increasing.
5. The most important determinants of GDP are unemployment, technology, and resources; these are the main determinants of the production possibilities curve as well as important determinants of GDP.
6. If I was President in order to increase the GDP I would do a few things. Firstly, I would decrease the subsidies on unemployment, and then I would take some of the money that was being used to subsidize unemployment to subsidize technology growth. Lastly, I would do my best to encourage new businesses.
1.The real GDP is the Gross Domestic Product (GDP) which is adjusted for inflation to that is it comparable with previous GDP numbers. GDP is the measure of the final value of all goods and services produced.
ReplyDelete2. GDP can be measured in both expenditures and in income. All money that is spent by Americans becomes income for someone else (CEO of business) but also adds to the GDP. If nation has a certain purchasing power that income is contributed to buying the goods and services that value GDP.
3. The four groups who receive income generated by the production of goods and services are workers, landlords, banks, and business owners.
4. Most the income gains in the past 15 years have gone to workers, educated and skilled. In result, the middle class workers receive none of the income gains. GDP is increasing but only the educated and skilled are receiving GDP.
5. The determinates of GDP include increased technology, increased population, increase in schooling. Income has a big role on what can be done and what cannot be done.
6. If I was president my main goal would to make college education and more affordable thing to do therefore more people would attend college improving the overall education of the country. I could do this in ways such as finding cheaper ways to run buildings or buy the books needed in order to complete that education.
1. Real GDP is a calculation that measures the market value (final price) of all the final goods and services produced within the borders of our country. It is the only GDP reported by the media. The word “real” is almost always dropped to avoid confusion with the average citizen. The percentage growth comparison is always restated for inflation so that the production figures are comparable from one period to the next
ReplyDelete2. Real GDP is same as Real Income because GDP growth means that the country’s purchasing power grew which represents the income growth to purchase increasing goods and services. Also, every dollar you spend is going to someone as income in forms of wages, rent, interest income, or profits. Therefore, increase in real GDP would also mean increase in real income.
3. The four groups which earn the income generated by the production of goods and services are workers, landlords, bank, and owners of the business. They get their income in forms of wages, rent, interest income, and profits.
4. Our nation's middle class have made virtually no real income gains over the last 15 years even though our GDP = Income and our real GDP has been growing over the last 15 years. This is possible because the real GDP is a collective U.S. average. Therefore, it is possible for middle class income to have no change while the nation’s real GDP overall increased. What really happened is that most of the 3.9% increase in income is going to the educated and skilled workers and to the entrepreneurs. This phenomenon is happening because global labor competition and technology is increasing the gap between skilled workers and middle class people.
5. The most important determinants of real GDP growth are increased income, development of technology, increase in population, and increase in natural resource.
6. If I was a president, I would try to increase the nation’s GDP by putting more focus into technology improvements. Countries all around the world are competing to develop a new technology since technology determines our future. Improvements in technology will not only increase the current real GDP, it will increase the GDP in the future too because improvements in technology leads to many other benefits, such as efficient use and care of the natural resources, which will eventually help the nation. Another thing I would do is encouraging citizens to have multiple children and giving merits to families with many children. The children will eventually become our nation’s labor in the future. The more labor we have, the more goods and supplies we will have in the future. Since there are so many problems regarding the immigrants, I would encourage increase in population domestically. Finally, I would not waste the natural resources we currently have. Since natural resources are limited, efficient use of those will benefit us in the future. Abundant amount of natural resources allows us to produce more goods and export more.