Gross domestic product refers to the value of commodities that were produced by a country’s economy without including the commodities that were used in production. It includes a summation of personal consumption expenditure, government consumption expenditure, gross investment, government consumption expenditure. In 2008, the GDP increased -1 percent from the previous year 2007 annual level to 2008 (Mankiw 2014). Compared to 2% increase which occurred in 2007. These changes were as a result of distinguished contributors namely personal consumption expenditure, exports, spending by local government and the state too, federal government spending and also nonresidential structures.
Real Gross Domestic Product refers to the measure of the value of domestic output calculated so that it can counter for changes in the economy, mainly inflation and deflation. The real GDP in 2008 was -3.8 in advance and comparable to -6.2 in the preliminary. It is notable that the GDP has varied since 2008 (Mankiw 2014). For 2008, the national income was 14,573,576. This tells us that the flow of revenue which was supplied the resources in America.
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The GNP in 2008 amounted to about 14.35 trillion, which means that the GNP reduced between 2008 and 2009. Labor and property caused these changes a fall in the market value of commodities.
The national income in 2008 was 12,609.1. This tells us that they came up by responding to the Great Depression (U.S. Bureau Of Economic Analysis 2016). This was also contributed by the frustration that was as a result of lack of economic data. It reveals the amount of money that is earned in the United States.
The main difference between the GNP and the NI is that GNP is a tool that helps to measure the market value of the commodities in the country, but NI just gives the amount of income that is brought about by those commodities (Mankiw 2014). These changes were as a result of the fall in the income that was generated by the products or commodities by labor and also property.
The disposable income in 2009 was9836.7. The DI is composed of the amount of revenue that a person gets, after deducting the taxes. The DI in 2009 was less than that in 2008. In 2008, the DI was 10,119.5 (U.S. Bureau Of Economic Analysis 2016). These changes were most likely caused as a result of lowering the GPD and also the GDI.
The GDP does not support the measure the wellbeing of the society since does not take into account the debt of the coming generations. GDP of the state of Illinois was 631,962 million dollars. Illinois state is rated among the highest performing states in the United States of America.
References
"U.S. Bureau Of Economic Analysis (BEA)". Bea.gov. N.p., 2016. Web. 24 Nov. 2016.
Mankiw, N. G. (2014). Principles of macroeconomics. Stamford, CT : Cengage Learning
