At a monthly staff planning meeting, the outlook for the national economy was a

Question

At a monthly staff planning meeting, the outlook for the national economy was a topic of discussion. During the discussion, one participant noted that gross domestic product (GDP) was expected to increase only slightly for the coming year. Another commented that a slight increase in the expected GDP did not necessarily mean an increase in business activity or output. Still another participant asked about the role of GDP per capita as it relates to planning. The partner-in-charge of the meeting asked that, prior to the next planning meeting, you prepare and distribute a brief memorandum defining and describing (1) GDP, (2) real GDP, and (3) GDP per capita, and how each may be used for analytical purposes. Type your communication below the line in the response area below. REMINDER: In CPAexcel, the Written Communications are graded on key words. These are words that need to be included in the message in order to address the subject matter. However, on the exam itself, "Your response will be graded for both technical content and writing skills. Technical content will be evaluated for information that is helpful to the intended reader and clearly relevant to the issue. Writing skills will be evaluated for development, organization, and the appropriate expression of ideas in professional correspondence. Use a standard business memorandum or letter format with a clear beginning, middle, and end. Do not convey information in the form of a table, bullet point list, or other abbreviated presentation." To: Staff Planning Participants From: I. M. Candidate Re: Gross domestic product (GDP) measures

Explanation / Answer

TO: Staff Planning Participants

From: Mohamad Maqbool lone

Date: 04 May 2016

Sub: Gross domestic product (GDP) measures

The previous discussion about Gdp measures was fruitfull. All participants showed great enthusisum and vigour to make the discussion productive. The basic parameters of economy of country were discussed and their importance was brought in limelight. However analytical ground of measures of economic development were also brought under perview.

As we know The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.

The real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP.

Per capita GDP is a measure of the total output of a country that takes the gross domestic product (GDP) and divides it by the number of people in the country. The per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries. A rise in per capita GDP signals growth in the economy and tends to translate as an increase in productivity

Above mentioned analysis was recorded out of the discussion.

Thank you for your cooperation!

Best,

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