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1. What was Real GDP for 2009? a. What does GDP tell us? b. How did GDP change f

ID: 2506612 • Letter: 1

Question

1. What was Real GDP for 2009? a. What does GDP tell us? b. How did GDP change from 2008? c. What caused these changes? 2. What was GNP for 2009? a. What is the difference between GDP and GNP? b. How did GNP change from 2008? c. What caused these changes? 3. What was National Income (NI) for 2009? a. What does National Income tell us? b. What is the difference between GNP and NI? c. How did NI change from 2008? d. What caused these changes? 4. What was Disposable Income (DI) for 2009? a. What does Disposable Income consist of? b. How did DI change from 2008? c. What caused these changes? 5. What was GDP in 2008 (sometimes called GSP) for your state (Washington)?

Explanation / Answer

GDP changes in 2008

Real gross domestic product -- the output of goods and services produced by labor and property

located in the United States -- decreased at an annual rate of 6.3 percent in the fourth quarter of 2008,

(that is, from the third quarter to the fourth quarter), according to final estimates released by the Bureau

of Economic Analysis. In the third quarter, real GDP decreased 0.5 percent.

The GDP estimates released today are based on more complete source data than were available for

the preliminary estimates issued last month. In the preliminary estimates, the decrease in real GDP was

6.2 percent...