Part 1:Expenditures Approach to Calculating GDP

Complete the following exercise

Visit the Bureau of Economic Analysis website atwww.bea.gov(Links to an external site.)

. From the drop-down menu under "Data", click on "by Economics Account".

Then click on "National"> "Gross Domestic Product > and "Full Release and Tables". (To find "Full Release and Tables" you need to scroll down the page to the section "Current Release".

Use table 3 (Gross Domestic Product: Level and Change from Preceding Period). Tables are located at the end of the Release, so you need to scroll all the way down to the tables.

The left columns are nominal GDP (and its components) and the right half represents real GDP (chained 2012 dollars).

1. Create a tablethat containsthe following information (both Nominal & Real) for the last available quarter.Please note that using the data for previous quarters will produce a zero grade for this part.

You need this information frombothparts of the table 3- (nominal GDP (and its components) from left columns and real GDP (chained 2012 dollars) from the right part of the table 3).

Gross domestic product

Personal consumption expenditures (C)

Gross private domestic investment (I)

Net exports of goods and services (NX)

Government consumption expenditures and gross investment (I)

Part 2: Answer the following questions using the data from your table in Part 1.

1. Why was the nominal GDP greater than the real GDP?By how much?

2. GDP is composed of a number of categories (C, I , G, NX). Which category makes up the largest portion of GDP (in Real and Nominal Terms)?