PART1: Expenditures Approach to Calculating GDP

Complete the following exercise 1. Use table 3 (Gross Domestic Product: Level and Change from Preceding Period). The left columns are nominal GDP (and its components) and the right half represents real GDP (chained 2012 dollars).

Table 3

September 29, 2022 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 2021 2022 2021 2022 202 2022 2021 02 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q1 02 1 Gross domestic product (GDP) 23,315.1 23,046.9 23,550.4 24,349.1 24,740.5 25 248.5 19,609.8 19,544.2 19,672.6 20,006.2 19,924.1 19,895.3 1,100.7 -82.1 -28.8 1 2 Personal consumption expenditures 15,902.6 15,813.5 16,147.3 16,518.0 16,874.8 17,261.3 13,754.1 13,773.7 13,874.4 13,981.5 14,028.4 14,099.5 1,053.4 46.9 71.1 2 3 Good 5,496.5 5,529.9 5,517.1 5,673.7 5,843.2 5,953.6 5,561.9 5,649.9 5,534.6 5,566.7 5,565.7 5,529.6 606.2 -1.0 -36.1 3 2,060.2 2,1135 2,035.0 2,101.6 2,183.9 2,181.8 2,258.8 2,347.0 2,206.0 2233.5 2,275.1 2,259.2 354.6 41.5 -15.9 4 Durable goods 688.7 736.8 656.3 695.0 737.1 724.5 614.0 668.9 563.8 573.6 594.7 578.7 83.7 21.0 -15.9 5 Motor vehicles and parts Furnishings and durable household equipment 495.0 498.6 194.9 499.5 516.8 525.1 535.4 543.7 530.7 522.5 518.4 517.6 66.5 -4.2 -0.8 6 Recreational goods and 603.9 604.6 604.5 623.6 641.4 640.5 846.3 B48.3 843.8 867.9 890.1 893.2 141.7 22.1 3.1 7 vehicles 272.6 273.6 279.3 283.5 288.6 291.7 326.6 326.7 333.0 33810 340.2 343.8 77.4 2.2 3.6 8 B Other durable goods 269.4 -37.6 -20.7 9 9 Nondurable goods 3,436.3 3,416.4 3,482.2 3,572.1 3,659.3 3,771.9 3,336.2 3,351.4 3,365.5 3,371.7 3,334.1 3,313.5 Food and beverages purchased 1,205.0 1,1942 1,211.7 1,239.0 1,248.5 1.260.4 1,082.0 1,084.7 1,081.8 1,083.3 1,062.7 1,035.3 38 9 -20.6 -27.4 10 for off-premises consumption 461.3 468.5 471.2 472.6 480.5 488.6 486.4 495.3 495.0 490.9 485.1 489.9 100.6 -5.8 4.8 11 11 Clothing and footwear 369.4 354.0 387.6 430.6 474.5 541.0 433.0 434.8 445.9 450.2 438.4 436.0 45.1 -11.7 -24 12 12 Gasoline and other energy goods 1,400.5 1,399.8 1,411.7 1,429.6 1,455.8 1,481.9 1,299.3 1,301.9 1,310.1 1,314.8 1,315.7 1,322.7 93.7 0.9 7.0 13 13 Other nondurable goods Services 10,406.1 10,283.6 10,630.2 10,844.3 11,031.6 11,307.7 8,361.1 8,309.5 8,494.3 8,568.2 8,613.0 8,709.6 44.7 96.7 14 14 15 Household consumption 9,940.5 9,835.0 10,167.6 10,355.6 10,525.4 10,7792 8,023.2 7,978.1 8,164.9 8,234.9 8,270.4 8,359.0 562 4 35.5 88.6 15 expenditures (for services) 2,775.4 2,7528 2,792.4 2,829.4 2,896.1 2,958.4 2,146.7 2,143.7 2,151.7 2,149.1 2,165.9 2,170.5 23.7 16.8 4.6 16 16 Housing and utilities 17 2,583.5 2,571.7 2,615.1 2,650.9 2,673.4 2,684.8 2,231.5 2,226.4 2,254.9 2,276.1 2,273.5 2,276.0 152.5 -2.6 2.6 17 Health care 444.1 429.5 484.5 497.0 506.6 551.6 395.1 382.6 425.8 433.1 4315 439.0 54.3 -1.5 7.4 18 18 Transportation services 469.0 19 471.4 481.8 61.9 2.5 10.3 19 Recreation services 528.5 515.2 551.8 579.6 590.9 610.3 435.0 426.3 452.0 20 Food services and 1,060.9 1,048.7 1,125.3 1,159 2 1,178.0 1,247.0 830.2 832.6 871.5 879.4 879.7 913.1 158.1 0.3 33.5 20 accommodations Financial services and insurance 1,275.0 1,2635 1,287.0 1,312.1 1,309.8 1,309.1 874.1 867.4 875.4 886.4 884.8 888.9 32.B -3.6 4.0 21 21 92.5 25.4 26.7 22 Other services 1,273.2 1,2538 1,311.5 1,327 5 1,370.7 1,418.0 1,122.2 1,109.7 1,1510 1,157.8 1,1832 1,209.9 23 Final consumption expenditures of nonprofit institutions serving 337.9 346.1 353.6 8.3 7.5 23 households 165.5 448.6 462.5 488.6 506.2 528.5 341.1 334.8 24 Gross output of nonprofit 1,748.8 1,733.4 1,760.6 1,807 0 1,821.2 1,839.1 1,396.2 1,393.3 1,397.7 1,413.7 1,4074 1,406.9 120 - -0.5 24 institutions 25 Less: Receipts from sales of goods and services by nonprofit institutions 1,283.3 1,284.9 1,298.1 1,318.4 1,315.1 1,310.6 1,058.7 1,062.4 1,068.2 1,080.4 1,064.0 1,054.6 76.1 -16.3 -9.4 25 296.5 6 Gross private domestic investment 4,113.5 3,943.4 4,109.1 4,499.2 4,671.0 4,609.9 3,603.0 3,496.9 3,584.1 3,841.8 3,892.5 3,747.0 50.7 -145.5 26 4,132.6 4,102.8 4,164.3 4,259.2 4,413.6 4,464.6 3,574.6 3,590.9 3,581.1 3,586.2 3,628.6 3,581.9 247 8 42.4 -46.7 27 27 Fixed investment 169.4 54.8 0.5 28 28 Nonresidentia 3,025.0 3.007.3 3,046.3 3,111.8 3,225.0 3292.2 2,835.4 2,847.7 2,8522 2860.2 2,9150 2,915.5 598.2 595.4 599.7 627.3 631.2 477.5 484.9 4 460.7 455.6 440.4 -32.8 -5.1 -15.3 29 29 Structures 1,194.0 1,191.5 1,197.3 1,2212 1,277.8 1,299.5 1,221.8 1,234.0 1,227.1 1,232.0 1,265.7 1,259.1 114.5 33.7 -6.5 30 30 Equipment 31 Information processing equipment 426.7 422.7 420.3 441.3 464.2 458.5 540.4 536.7 531.7 556.7 579.0 569.6 48.0 22.3 -9.4 31 277.3 273.2 285.6 298.4 315.8 318.7 251.0 250.0 256.2 263.0 27019 206.7 26.7 7.9 -4.2 32 32 Industrial equipment -1.9 33 Transportation equipment 224.5 232.9 274 4 20B.8 208.5 224.0 222.7 237.7 229.2 208.2 206.3 212.1 30.2 5.8 33 34 Other equipment 265.5 262.7 267.0 272.7 289.3 298.3 236.2 237.0 236.0 234.5 241.8 241.8 12.2 7.3 -0.1 34 35 Intellectual property products 232.7 1.220.4 1.249.2 1 280.4 1,319.9 1,361.4 1,153.0 1,145.4 1,166.0 1,188.8 1,219.6 1,245.9 101.8 30.9 26.3 35 26.1 15.2 36 36 Software 512.4 510.0 520.3 526.5 545.1 558.9 574.2 571.0 582.8 589.7 615.7 630.9 65.2 2 37 629.8 622.9 636.8 656.4 674.3 693.9 511.9 509.7 516.2 527.3 534.3 541.7 41.0 7.0 7.4 37 Research and development 38 Entertainment, literary, 90.5 87.4 92.1 975 100.6 108.7 80.1 77.8 84.9 86.1 90.9 0.0 1.1 4.6 38 and artistic originals 39 Residential 1,107.6 1,095.6 1,118.0 1,147 3 1,188.6 1,172.4 719.4 723.0 712.2 710.3 704.7 671.0 69.5 -5.6 -33.8 39 40 Change in private inventories -19.1 -159.4 -55.2 240.0 257.4 145.4 -19.4 -143.6 197.6 214.5 110.2 35.2 17.0 -104.4 40 41 Farm -3.0 -3.1 -2.0 4.9 -6.6 -9.5 -3.9 4A -3.8 -9.6 -15.5 -19.5 4.5 4.0 41 Nonfarm -16.1 -156.3 -53.1 244.9 264.1 154.9 -16.0 -13719 -44.8 202.2 223.6 123.6 30.9 21.4 -100.0 42 1. Real gross domestic income is gross domestic income deflated by the implicit price deflator for gross domestic product. Joke. Users are cautioned that particularly for components that exhibit rapid change in prices relative to other prices in the economy, the chained-dollar estimates should not be used to measure the component's relative importance or itsSeptember 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 02 03 Q4 Q1 02 1 Gross domestic product (GDP) 21,381.0 21,060.5 23,315.1 23,046.9 23,550.4 24,349.1 24,740.5 25,248.5 1 2 Plus: Income receipts from the rest of the world 1,172.2 971.3 1,087.0 1,062.8 1,106.8 1,120.9 1,147.1 1,231.3 2 3 Less: Income payments to the rest of the world 894.2 774.3 913.9 9170 939.0 939.5 958.4 1,023.3 4 Equals: Gross national product 21,659.0 21,257.4 23,488.2 23,192.7 23,718.3 24,530.6 24,929.2 25,456.4 5 Less: Consumption of fixed capital 3,436.6 3,577.8 3,831.6 3,775.4 3,875.7 3,984.9 4,113.6 4.242.1 6 Less: Statistical discrepancy -105.5 -214.9 -128.9 -24.3 -133.5 -124.2 -277.0 -323.1 7 Equals: National income 18,327.9 17,894.6 19,785.5 19,441.6 19,976.1 20,669.9 21,092.6 21,537.4 8 Compensation of employees 11,448.1 11,592.7 12,538.5 12,369.8 12,681.3 13,044.4 13,259.7 13,469.0 8 9 Wages and salaries 9,324.6 9,457.4 10,290.1 10,138.5 10,422.3 10,748.4 10,925.5 11,108.4 9 10 Supplements to wages and salaries 2,123.5 2,135.4 2,248.4 2,231.3 2,259.0 2,296.0 2,334.2 2,360.5 10 11 Proprietors' income with inventory valuation and capital consumption adjustments 1,601.4 1,643.1 1,753.6 1,776.9 1,792.7 1,7898 1,811.4 1,835.4 11 12 Rental income of persons with capital consumption adjustment 698.2 719.8 723.8 713.5 722.7 739.6 744.9 775.9 12 13 Corporate profits with inventory valuation and capital consumption adjustments 2.402.2 2,260.1 2,771.1 2,786.8 2,843.5 2.865.9 2,869.6 3,001.3 13 14 Net interest and miscellaneous payments 571.2 665.8 644.1 651.6 622.0 621.5 630.2 608.2 14 15 Taxes on production and imports less subsidies 1,457.1 869.0 1,181.5 974.2 1,133.7 1,424.3 1,604.9 1,652.0 15 16 Business current transfer payments (net) 164.0 144.1 171.0 169.6 176.9 178.8 170.1 198.7 16 17 Current surplus of government enterprises -14.2 -0.1 2.1 -0.7 3.3 5.8 1.8 -3.0 17 Addenda: 18 Gross domestic income (GDI) 21,486.5 21,275.4 23,444.0 23,071.2 23,683.9 24,473.3 25,017.5 25,571.6 18 19 Average of GDP and GDI 21,433.7 21,167.9 23,379.6 23,059.1 23,617.2 24,411.2 24,879.0 25,410.0 19 20 Statistical discrepancy as a percentage of GDP -0.5 -1.0 -0.6 -0.1 -0.6 -0.5 -1.1 -1.3 20 Source: U.S. Bureau of Economic AnalysisSeptember 29, 2022 Table 8. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates Line 2019 2020 2021 2021 2022 Line 02 03 04 Q1 02 1 Personal income 18,587.0 19,832.3 21,294.8 20,916.4 21,005.2 21,162.1 21,319.8 21,625.5 1 2 Compensation of employees 11,448.1 11,5927 12,538.5 12 369.8 12681.3 13,044.4 13,259.7 13,469.0 2 Wages and salaries 9,324.6 9,457.4 10,290.1 10,138.5 10,422.3 10,748.4 10,925.5 11,108.4 3 Supplements to wages and salaries 2,123.5 2,135.4 2,248.4 2,231.3 2,259.0 2,296.0 2,334.2 2,360.5 4 Proprietors' income with inventory valuation and capital consumption adjustments 1,601.4 1,643.1 1,753.6 1,776.9 1,7927 1,789.8 1.811.4 1,835.4 6 Farm 29.1 45.2 51.3 71.2 63.8 43.9 74.4 95.7 6 7 Nonfarm 1,572.3 1,597.9 1,702.2 1,705.7 1,728.9 1,745.9 1,737.0 1,739.7 7 Rental income of persons with capital consumption adjustment 698.2 719.8 723.8 713.5 722.7 739.6 744.9 775.9 8 9 Personal income receipts on assets 3,119.0 3,095.4 3,202.4 3,196.3 3,222.9 3,258.5 3,269.9 3,323.0 9 10 Personal interest income 1,658.1 1,647.3 1,658.6 1,665.4 1,655.7 1,657.5 1,670.8 1,708.6 10 11 Personal dividend income 1,460.9 1,448.1 1,543.9 1,530.9 1,567.3 1,601.0 1,599.1 1,614.4 11 12 Personal current transfer receipts 3,144.8 4,231 2 4,617.3 4,381.6 4,139.6 3,925.7 3.868.7 3,8832 12 13 Less: Contributions for government social insurance, domestic 1,424.6 1,450.0 1,540.8 1,521.7 1,554.0 1,595.8 1,634.7 1,660.9 13 14 Less: Personal current taxes 2,198.4 2,236.4 2,661.7 2.638.5 2,693.2 2806.1 3,145.5 3,197.9 14 15 Equals: Disposable personal income 16,388.6 17,595.9 18,633.1 18 277.8 18,312.0 18,356.1 18,174.4 18,427.6 15 16 Less: Personal outlay's 14,942.0 14,603.6 16,389.8 16.299.3 16,643.0 17,019.0 17,389.5 17,798.7 16 17 Equals: Personal saving 1,446.6 2,992.3 2,243.4 1,978.6 1,669.1 1,337.1 784.9 629.0 17 18 Personal saving as a percentage of disposable personal income 8.8 17.0 12.0 10.8 9.1 7.3 4.3 3.4 18 Addenda: 19 Personal income excluding current transfer receipts, billions of chained (2012) dollars 14,046.9 14,036.8 14,424.3 14,401.8 14,491.6 14,589.6 14,507.5 14,492.4 19 20 Disposable personal income, billions of chained (2012) dollars 14,907.8 15,831.6 16,115.7 15,920.1 15,734.4 15,537.3 15,108.8 15,052.1 20 1. Personal income is also equal to national income leas corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments (neff, and current surplus of goverment enterprises, 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 con sumption expenditures. Source: U.S. Bureau of Economic Analysis