Data Exercise #1

Consists of two parts.

Part 1:Expenditures Approach to Calculating GDP

BEA estimates the nation's GDP for each year and each quarter. But new GDP statistics are released every month. Why? Because for each quarter, BEA estimates GDP three times. Theadvance estimate, coming about a month after the quarter's end, is an early look based on the best information available at that time. Thesecond estimateandthird estimateeach incorporate additional source data that weren't available the month before, improving accuracy.(www.bea.gov).

BEA publishes estimates of levels at annual rates (for most series) for ease of comparisons with related and historical data. For example, in its February 2, 2004 personal income and outlays release, BEA estimated that personal income for December 2003 was $9,335.8 billion at an annual rate. This is easily compared to BEA's estimates of personal income for the fourth quarter of 2003 ($9,312.6 billion, at an annual rate) and for the entire year of 2003 ($9,187.4 billion).(www.bea.gov).

Published

January 13, 2006

Complete the following exercise

Use table 3 (Gross Domestic Product: Level and Change from Preceding Period).

Table 3. Gross Domestic Product: Level and Change from Preceding Period--Continues Billions of dollars Billions of chained (2012) dollars Change from preceding Seasonally adjusted at annual rates Seasonally adjusted at annual rates period Line Line 2021 2022 2021 2021 2021 2022 2021 2021 2022 Q1 02 Q3 Q4 Q1' Q1 Q2 Q3 Q4 Q1' 04 Q1' 1 Gross domestic product (GDP) 22,996.1 22,038.2 22,741.0 23,202.3 24,002.8 24,386.7 19,427.3 19,055.7 19,368.3 19,478.9 19,806.3 19,727.9 1,042.6 3274 -78.4 1 2 Personal consumption expenditures 15,741.6 15,005.4 15,681.7 15,964.9 16,314.2 16,670.1 13,624.8 13,282.7 13,665.6 13,732.4 13,818.4 13,881.1 994.9 85.9 62.8 2 601.4 15.6 -4.2 3 Good 5,481.4 5,245.0 5,529.8 5,500.1 5,650.8 5,805.9 5,543.9 5,476.6 5,646.7 5,518.3 5,533.9 5,529.7 3 Durable goods 2,026.2 1,957.8 2,092.2 1,9952 2,059.7 2,122.3 2,225.1 2,253.5 2,316.2 2,158.5 2,171.9 2,203.1 340.8 13.4 31.2 4 Motor vehicles and parts 700.1 674.9 758.1 667.9 699.4 734.0 623.2 661.2 686.1 576.0 569.7 591.5 81.3 -6.3 21.8 5 Furnishings and durable 469.7 461.9 473.7 468.7 474.4 486.6 508.2 517.0 517.1 502.3 496.4 490.3 63.8 -5.9 -6.1 6 household equipment Recreational goods and 577.3 559.4 580.8 575.0 594.1 603.4 808.6 792.2 814.7 801.7 825.7 836.3 130.1 23.9 10.6 7 vehicles Other durable goods 279.2 261.7 279.6 283.6 291.8 296.3 333.2 317.0 332.6 336.7 346.7 348.1 81.4 10.1 1.4 8 9 Nondurable goods 3,455.2 3,287.2 3,437.6 3,505.0 3,591.1 3,683.6 3,359.4 3,269.3 3,3772 3,394.0 3,397.1 3,365.4 279.0 3.1 -31.8 9 10 Food and beverages purchased 46.8 -2.5 -11.7 10 for off-premises consumption 1,234.8 1,201.5 1,223.4 1 245.3 1,268.8 1,289.7 1,108.8 1,103.3 1,112.1 1,111.2 1,108.7 1,097.0 468.7 436.8 477.0 479.7 481.4 488.5 494.3 466.2 505.2 504.3 501.4 494.7 104.1 -2.B -6.7 11 11 Clothing and footwear 12 Gasoline and other energy goods 359.4 300.3 345.5 376.2 415.8 456.2 423.6 393.7 425.5 437.1 438.2 425.1 37.3 1.2 -13.2 12 95.8 7.1 -0.7 13 13 Other nondurable goods 1,392.3 1,348.5 1,391.9 1,403.7 1,425.0 1,449.3 1,292.2 1,259.6 1,294.9 1,303.6 1,310.7 1,310.0 14 449.6 67.7 62.3 14 Services 10,260.1 9,760.4 10,151.9 10,464.8 10,663.4 10,864.2 8,258.1 7,993.4 8,214.3 8,378.5 8,446.2 8,508.5 15 Household consumption expenditures (for services) 9,777.2 9,281.7 9,684.8 9,984.4 10,157.9 10,339.1 7,903.2 7,622.4 7,863.1 8,031.4 8,095.7 8,146.0 509.7 64.3 50.3 15 23.7 0.3 19.2 16 16 Housing and utilities 2,776.7 2,727.2 2,753.4 2,792.6 2,833.4 2,903.5 2,147.9 2,142.4 2,143.9 2,152.5 2,152.8 2,172.0 17 2,545.3 2,464.2 2,534.4 2,574.5 2,608.2 2,630.8 2,198.6 2,140.7 2,193.6 2,219.8 2,240.2 2,237.7 146.8 20.3 -2.5 17 Health care 18 Transportation services 430.1 356.8 417.3 467.8 478.6 487.7 378.5 330.1 366.5 405.2 412.1 413.4 41.4 6.9 1.3 18 19 Recreation services 502.7 442.5 4 525.9 562.5 412.2 371.1 404.6 428.9 444.5 446.6 58.7 15.6 2.1 19 20 Food services and accommodations 1,027.0 888.3 1,028.7 1,083.1 1,107.7 1,137.1 815.2 725.9 826.4 851.6 856.8 867.7 152.0 5.2 11.0 20 Financial services and 1,270.8 1,244.9 1,256.4 1,276.3 1,305.7 1,308.6 877.7 874.7 867.9 876.6 891.4 890.1 26.1 14.8 -1.3 21 insurance 1,224.6 1,157 8 1,204.0 1,264.1 1,272.4 1,309.0 1,077 8 1,031.8 1,064.4 1,107 2 1,107.9 1,129.1 73.9 0.7 21.2 22 Other services Final consumption expenditures of nonprofit institutions serving households 482.9 478.7 467.1 480.4 505.5 525.1 355.9 370.1 352.2 349.1 352.4 363.3 -55.4 3.3 10.9 23 24 Gross output of nonprofit 1,722.7 1.6727 1,708.5 1,733.1 1,776.4 1,793.3 1,377.9 1,363.0 1,3774 1,378.4 1,392.7 1,389.9 8.6 14.2 -2.7 24 institutions Less: Receipts from sales of goods and services by nonprofit nstitutions 1,239.8 1,194.0 1,241.5 1,252.7 1,271.0 1,268.2 1,022.7 992.1 1,026.3 1,030.7 1,041.7 1,026.1 68.5 11.0 -15.6 25 Gross private domestic investment 4,120.0 3,928.0 3,925.1 4,099.6 4,527.2 4,695.1 3,640.0 3,541.3 3,506.0 3,609.7 3,903.0 3,951.1 323.8 293.4 48.0 26 27 Fixed investment 4,139.8 4,022.2 4,099.4 4,159.8 4,277.8 4,457.6 3,587.8 3,564.1 3,593.0 3,585.0 3,609.1 3,673.9 2584 24.1 1 64.8 27 3,053.7 2.956.7 3,029.2 3.073.9 3,154.9 3.285.5 2,868.5 2810.4 2,873.1 2,884.8 2,905.5 2,975.4 197.4 20.7 69.8 28 Nonresidential 580.2 565.05 581.9 601.2 625.5 454.7 462.1 458.6 453.8 444.1 443.1 -39.5 -9.8 -1.0 29 Structures 1,274.9 1,2445 1,270.4 1,2772 1,307.7 1,374.8 1,304.8 1,278.5 1,315.7 1,307.9 1,3170 1,361.1 150.8 9.1 44.1 30 Equipment 31 Information processing 471.9 472.1 461.9 461.4 492.1 525.7 599.6 600.1 568.1 586.1 624.2 659.6 76.6 38.1 35.4 31 equipment 287.6 260.8 284.7 294.9 310.1 328.4 260.8 243.0 260.9 265.1 274.0 282.5 32.0 8.9 8.5 32 32 Industrial equipment 33 Transportation equipment 221.2 225.4 231.2 222.3 205.8 201.7 219.2 212.6 236.1 225.8 202.3 198.2 27.9 -23.5 4.0 33 34 Other equipment 294.3 286.3 292.6 298.6 299.6 319.1 260.6 260.B 262.9 262.5 256.0 264.8 20.4 -6.5 8.8 34 Intellectual property products 198.5 1,147.2 1,186.0 1,246.0 1.285.2 1,135.0 1,091.9 1,124.6 6 1,149.3 1,174.0 1,205.7 103.6 24.7 31.7 35 36 66.9 7.8 26.7 36 Software 503.9 484.2 501.3 511.7 518.3 537.2 569.2 547.1 565.5 578.2 586.0 612.7 37 Research and development 600.9 576.3 594.5 607.2 625.6 642.6 496.9 480.1 493.0 501.6 513.1 520.2 38.1 11.5 7.2 37 38 Entertainment, literary, and artistic originals 93.7 86.7 90.2 95.9 102.1 105.3 82.9 76.0 84.2 88.9 90.1 3.2 4.7 1.2 38 1,086.1 1,065.5 1,070.2 1,085.9 1,122.9 1,172.0 707.7 730.6 708.2 694.2 697.9 698.7 59.7 3.B 0.7 39 39 Residential 40 Change in private inventories -19.9 .94.2 -174.3 60.2 249.3 237.5 -32.6 -88.3 -168.5 66.8 193.2 188.5 9.7 259.9 -4.7 40 41 -5.4 -3.3 -4.6 -5.1 -8.5 -11.7 -229 -15.7 -22.7 -24.3 -28.9 -37.3 -15.2 4.6 -8.4 41 Farm 42 Nonfarm -14.4 -90.9 -169.7 -55.1 257.9 249.2 -14.0 -74.4 -46.5 212.8 214.9 21.3 259.3 2.1 42 Revised I. Real gross domestic income is gross domestic income deflated by the implicit price deflator for gross domestic product. Note. Users are cautioned that particularly for components that exhibit rapid change in prices relative to offer prices in the economy, the chained-dollar estimates should not be used to measure the component's relative importance or its contribution to the growth rate of more aggregale series. For accurate estimates of the contributions to percent changes in real gross domestic product, use table 2. Source: U.S. Bureau of Economic AnalysisTable 3. Gross Domestic Product: Level and Change from Preceding Period--Table Ends Billions of dollars Billions of chained (2012) dollars Seasonally adjusted at annual rates Seasonally adjusted at annual rates Change from preceding Line Line 2021 period 2021 2022 2021 2021 2022 2021 2021 2022 Q1 Q2 03 04 02 03 Q4 04 01' 43 Net exports of goods and services -918.2 -872.5 -881.7 -947.0 -971.4 -1,177.9 -1,284.3 -1,226.1 -1,244.5 -1,316.6 -1,350.1 -1,544.7 -341.6 -33.6 -194.6 43 44 Exports 2,478.3 2,311.9 2,461.5 2,485.2 2,654.5 2,732.4 2,307.5 2,262.3 2,304.2 2,273.0 2,390.6 2,361.3 100.0 117.6 -29.3 44 Goods 1,740.5 1,6075 1,726.8 1,750.7 1,877.0 1,937.8 1,728.7 1,696.9 1,723.5 1,701.3 1,793.0 1,757.7 121.9 91.7 -35.3 45 46 Services 737.8 704.4 734.8 734.6 777.4 794.6 607 7 594.1 609.0 599.8 627.7 631.5 -9.6 27.9 3.8 46 47 Imports 3,396.5 3,184.5 3,343.2 3,432.3 3,625.9 3,910.3 3,591.9 3,488.4 3,548.7 3,589.6 3,740.8 3,906.0 441.6 151.2 165.2 47 48 Goods 2,850.4 2.698.1 2,819.0 2.8574 3,027.1 3.288.3 3,150.5 3,092.7 3,125.5 3,122.8 3,261.1 3,414.9 400.3 138.3 153.8 48 49 Services 546.1 486.4 524.2 574.8 596.8 622.1 472.3 433.0 456.6 492.2 5076 522.2 48.5 15.4 14.7 49 60 Government consumption expenditures and gross investment 4,052.7 3,977.3 4,015.9 4,084.9 4,132.9 4,199.5 3,376.3 3,390.9 3,373.8 3,381.6 3,359.0 3,334.3 16.1 -22.6 -24.7 50 51 Federal 1,565.0 1,568.6 1,563.3 1,562.0 1,566.2 1,566.9 1,348.9 1,375.2 1,356.7 1,339.1 1,324.3 1,301.1 8.2 -14.8 -23.2 51 National defense 905.3 897.1 904.1 910.9 909.0 903.8 793.5 799.9 797.8 794.3 782.0 762.0 -7.4 -12.2 -20.1 52 Consumption expenditures 708.8 707 4 710.0 710.3 707.6 705.7 614.7 624.6 620.1 612.4 601.7 587.5 -16.6 -10.7 -14.2 53 Gross investment 196.4 189.7 194.1 200.6 201.5 198.1 179.8 176.1 178.6 183.1 181.6 175.6 9.7 -1.5 -5.9 54 Nondefense 659.7 671.6 659.2 651.1 657.1 663.1 554.1 573.7 557.7 543.9 541.2 537.8 15.1 -2.7 -3.4 55 8 8488483 Consumption expenditures 496.1 512 6 498.1 485.8 488.1 489.9 410.0 431.0 414.6 399.2 395.4 390.7 15.8 -3.B 4.6 56 Gross investment 163.6 159.0 161.1 165.3 169.1 173.3 144.0 142.2 142.9 144.9 146.1 147.5 -0.9 1.2 1.4 57 State and local 2,487.7 2,408.7 2,452.6 2,522.9 2,566.7 2,632.6 2,027.8 2,017.1 2,017.9 2,042.1 2,034.0 2,031.7 7.8 -8.1 -2.4 58 Consumption expenditures 2,045.4 1,966.5 2,015.3 2,080.6 2,119.3 2,181.0 1,659.9 1,646.7 1,659.7 1,687.5 1,685.8 1,690.7 27.4 -1.7 4.9 59 Gross investment 442.3 442 2 437.3 442.3 447.4 451.6 357.8 370.3 358.2 354.6 348.3 341.2 -19.5 -6.3 -7.1 60 61 Residual -133.3 -121.4 -132.9 -130.5 -118.3 ...... 61 Addenda 62 Gross domestic income (GDI) 23,533.4 22,547.9 23,132.7 23,8332 24,619.9 25,223.1 19,881.2 19,496.4 19,701.9 20,008.5 20,315.5 20,404.5 1,346.5 306.9 89.1 62 63 Average of GDP and GDI 23,264.7 22,293.1 22,936.8 23,517.8 24,311.3 24,804.9 19,654.3 19,276.0 19,535.1 19,743.7 20,060.9 20,066.2 1,194.5 317.2 5.4 63 64 Final sales of domestic product 23,015.9 22,132.5 22,915.3 23,262.5 23,753.5 24,149.2 19,375.8 19,076.1 19,449.3 19,453.4 19,524.3 19,463.7 979.8 70.9 -60.6 64 65 Gross domestic purchases 23,914.3 22,910.8 23,622.6 24,149.4 24,974.2 25,564.6 20,633.3 20,211.1 20,540.9 20,716.4 21,064.6 21,148.4 1,326.7 348.2 83.8 65 66 Final sales to domestic purchasers 23,934.1 23,005.0 23,797.0 24,209.6 24,724.9 25,327.1 20,582.0 20,233.6 20,625.1 20,691.8 20,777.7 20,879.0 1,262.3 86.0 101.2 66 67 Final sales to private domestic 19,881.4 19,027.7 19,781.1 20,124.7 20,592.0 21,127.6 17 212.3 16,846.3 17 258.3 17,317.3 17,427.3 17,555.1 1,253.3 110.0 127.8 67 68 Gross domestic product 22,996.1 22,038.2 22,741.0 23,202.3 24,002.8 24,386.7 19,427 3 19,055.7 19,368.3 19,478.9 19,806.3 19,727.9 1,042.6 327.4 -78.4 68 Plus: Income receipts from the rest of the world 1,145.0 1,081.6 1,112.4 1,184.1 1,202.0 1,230.3 981.5 948.3 961.2 1,009.1 1,0072 1,011.4 97.7 -1.9 4.2 69 70 `Less: Income payments to the rest of the world 892.5 846.7 882.0 916.4 925.1 967.9 765.2 742.4 781.0 775.2 795.7 78.5 -5.8 20.5 70 71 Equals: Gross national product 23,248.5 22,273.1 22,971.4 23,470.0 24,279.7 24,649.2 19,644.0 19,262.1 19,568.1 19,707.3 20,038.6 19,944.2 1,061.7 331.3 -94.4 71 72 Net domestic product 19,148.2 18,342.3 18,953.1 19,306.5 19,991.0 20,243.5 16,109.7 15,780.6 16,063.6 16,147.0 16,447.6 16,342.5 941.6 300.6 -105.1 72 Revised 1. Real gross domestic income is gross domestic income deflated by the impl Note. Users are cautioned that particularly for components that exhibit rapid change in price estimates should not be used to me mponent's relative importance or its contribution to the growth rate of more aggregate series. For a Source: U.S. Bureau of Economic AnalysisJune 29, 2022 Table 7. Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of dollars] Seasonally adjusted at annual rates Line 2019 2020 2021 2021 2022 Line Q1 Q2 Q3 04 01 1 Gross domestic product (GDP) 21,372.6 20,893.7 22,996.1 22,038.2 22,741.0 23,2023 24,002.8 24,386.7 2 Plus: Income receipts from the rest of the world 1,160.3 992.9 1,145.0 1,081.6 1,112.4 1,184.1 1,202.0 1,230.3 3 Less: Income payments to the rest of the world 9 770.6 892.5 846.7 882.0 916.4 925.1 967.9 4 Equals: Gross national product 21,639.0 21,116.1 23,248.5 22,273.1 22,971.4 23,470.0 24,279.7 24,649.2 5 Less: Consumption of fixed capital 3,435.6 3,575.9 3,847.9 3,696.0 3,787.9 3,895.8 4,011.8 4,143.3 6 Less: Statistical discrepancy -69.7 -170.6 -537.3 -509.7 -391.7 -630.9 -617.0 -836.4 6 7 Equals: National income 18,273.1 17,710.7 19,938.0 19,086.8 19,575.1 20,205.0 20,885.0 21,342.3 8 Compensation of employees 11,447.7 11,572.2 12,598.7 12,088.9 12,416.6 12,756.5 13,132.6 13,424.9 9 Wages and salaries 9,323.5 9,444.1 10,343.8 9,8792 10,180.4 10,4872 10,828.3 11,084.7 10 Supplements to wages and salaries 2,124.2 2,128.0 2,254.9 2,209.7 2,236.2 2,269.3 2,304.4 2,340.2 10 11 Proprietors' income with inventory valuation and capital consumption adjustments 1,598.9 1,650.0 1,821.9 1,714.0 1,848.2 1,867.0 1,858.5 1,878.2 11 12 Rental income of persons with capital consumption adjustment 1 711.6 726.4 716.9 716.3 729.0 743.6 748.4 12 13 Corporate profits with inventory valuation and capital consumption adjustments 2,367.8 2,243.8 2,805.8 2,551.4 2,819.2 2,916.1 2,936.5 2,872.7 13 14 Net interest and miscellaneous payments 558.2 618.8 686.1 695.2 693.6 680.3 675.1 678.3 14 15 Taxes on production and imports less subsidies 1,459.4 773.3 1,148.1 1,173.8 930.7 1,099.6 1,388.1 1.588.2 15 16 Business current transfer payments (net 162.3 158.6 164.0 165.8 166.0 162 5 161.7 165.7 16 17 Current surplus of government enterprises -13.3 -17.5 12.9 -19.3 -15.4 -5.8 -11.2 -14.0 17 Addenda 18 Gross domestic income (GDI) 21,442 2 21,064.3 23,533.4 22,547.9 23,132.7 23,833.2 24,619.9 25,223.1 18 19 Average of GDP and GDI 21,407.4 20,979.0 23,264.7 22,293.1 22,936.8 23,5178 24,311.3 24,804.9 19 20 Statistical discrepancy as a percentage of GDP -0.3 -0.8 -2.3 -2.3 -1.7 -27 -2.6 -3.4 20 Revised Source: U.S. Bureau of Economic AnalysisJune 29, 2022 Table 8. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates Line 2019 2020 2021 2021 2022 Line Q1 Q2 03 Q4 01' 1 Personal income 18,424.4 19,627.6 21,092.8 21,867.3 20,669.9 20,823.8 21,010.0 21,257.2 1 2 Compensation of employees 11,447.7 11,572 2 12,598.7 12,088.9 12,416.6 12,756.5 13,1326 13,424.9 2 Wages and salaries 9,323.5 9,444.1 10,343.8 9,879.2 10,180.4 10,487.2 10,828.3 11,084.7 4 Supplements to wages and salaries 2,124.2 2,128.0 2,254.9 2,209.7 2,236.2 2,269.3 2,304.4 2,340.2 Proprietors' income with inventory valuation and capital consumption adjustments 1,598.9 1,650.0 1,821.9 1,714.0 1,848.2 1,867.0 1,858.5 1,878.2 6 Farm 38.4 70.2 97.8 73.0 119.4 110.6 88.0 109.1 7 Nonfarm 1,560.5 1,579.9 1,724.1 1,640.9 1,728.7 1,756.3 1,770.5 1,769.1 7 Rental income of persons with capital consumption adjustment 692.1 711.6 726.4 716.9 716.3 729.0 743.6 748.4 8 9 Personal income receipts on assets 2,968.0 2,912.1 2,941.3 2.898.8 2,932.1 2,945.2 2.989 2 3,007.8 9 10 Personal interest income 1,652.0 1,614.4 1,640.7 1,630.2 1,639.4 1,636.3 1,656.8 1,679.0 10 11 Personal dividend income 1,316.0 1,297 8 1,300.7 1,268.7 1,292 8 1,308.8 1,3324 1,328.9 11 12 Personal current transfer receipts 3,139.1 4,241.1 4 4,597.8 5,982.5 4,329.0 4,137.5 3,942.2 3,896.8 12 13 Less: Contributions for government social insurance, domestic 1,421.4 1,459.5 1,593.4 1,533.8 1,572 2 1,611.3 1,656.1 1,698.9 13 14 Less: Personal current taxes 2,205.1 2,195.6 2,585.2 2,412.1 2,532.5 2,641.1 2,754.9 3,060.9 14 15 Equals: Disposable personal income 16,219.3 17,432.0 18,507.6 19,455.3 18,137.4 18,182.7 18,255.1 18,196.3 15 16 Less: Personal outlays 14,981.5 14,544.5 16,226.3 15,475.6 16,165.0 16,456.2 16,808.4 17,173.4 16 17 Equals: Personal saving 1,237.8 2,887.5 2,281.3 3,979.7 1,972.4 1,726.4 1,446.7 1,022.9 17 18 Personal saving as a percentage of disposable personal income 7.6 16.6 12.3 20.5 10.9 9.5 7.9 5.6 18 Addenda: 19 Personal income excluding current transfer receipts, billions of chained (2012) dollars 13,905.6 13,833.7 14,276.8 14,061.1 14,240.1 14,352.9 14,456.6 14,456.0 19 20 Disposable personal income, billions of chained (2012) dollars 14,755.2 15,672.8 16,018.8 17,221.6 15,805.6 15,640.0 15,462.3 15,152.0 20 Revised 1. Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for ment social insurance, net interest and n ayments, business current transfer payments (net), and current surplus of go rises, plus personal income receipts on assets, and personal current transfer receipts. 2. The current-dollar measure is deflated by the implicit price deflator for personal consumption expenditures. Source: U.S. Bureau of Economic Analysis