Part 2:

Income Approach to Calculating GDP (weight 50% of the assignment grade)

Complete the following exercise

:

Go to

http://www.bea.gov/

Visit the Bureau of Economic Analysis website at

www.bea.gov

. From the drop-down

menu under "Data", click on "by Economics Account". Then click on "National", "Gross

Domestic Product, and "Full Release and Tables". Use table 7 (Relation of Gross

Domestic Product, Gross National Product, and National Income) and table 8 (Personal

Income and its Disposition).

1.

Create the table

that contains

the following information for the last

available

quarter.

Please note that using the data for previous quarters will produce

grade

zero

for this part of the project.

Omit the intermediate lines found in Tables 7 and 8 on the web site.

Gross

domestic

product

Gross

national

product

Net

national

product

(you should calculate it as Gross

national

product

minus Consumption of

fixed capital)

National

income

Personal

income

Present the information that you received in your project.

2. Which contains the analysis of

the results you received.

In this report consider, but do not be limited to the following:

1.

What is the difference between gross domestic product (GDP) and gross national product

(GNP)? What is the difference in what GDP measures compared to GNP?

2.

Based on the table, what calculations must you make to determine GNP from GDP?

3.

What is national income (NI)? What does NI measure?

4.

Which was higher in this year, GNP or NI? By how much?

5.

What calculations must you make to determine NI from GNP?

6.

NI is composed of a number of categories. What category makes up the largest portion of

NI?

7.

Please analyze and discuss the significance of the data that you received for this Data

exercise. Reflect on what you have learned from this exercise.