Read the U.S. BEA news release on GDP from the website below and analyze U.S. GDP and its demand side components. Use the GDP level data from pages 9 & 10 and provide the following information:

https://www.bea.gov/sites/default/files/2020-08/gdp2q20_2nd.pdfQ1

the following information is the answer:

this is the question that needs to be answered:based on the above link

Among the components, we have Net Exports or NX which has a negative value. Why do you think it is negative? From the BEA table please check thevalues forexports and imports (2020 Q2) and show how the NX is calculated.

GDP in 2019 Q2 = $21,329.9 Billion

GDP in 2020 Q2 = $19,486.5 Billion

Percentage change = - 8.642

Q2

Personal consumption expenditure = $13,046.7 billion

Gross private domestic investment = $3,134.2 billion

Net exports = $536.8 billion

Government expenditure = $3,842.4 billion

Q3

Personal consumption expenditure Percentage of GDP = 66.95%

Gross private domestic investment Percentage of GDP = 16.08%

Net exports Percentage of GDP = -2.75%

Government expenditure Percentage of GDP = 19.71%

Q4In the explanation section.

Explanation:

Q1How much was GDP in 2019 (quarter 2 or Q2) and in 2020 (Q2)? What was the percentage change? Show your work. What do you think caused this change?

GDP in 2019 Q2 = $21,329.9 Billion

GDP in 2020 Q2 = $19,486.5 Billion

Percentage change = (( GDP in 2020 Q2 - GDP in 2019 Q2 ) / GDP in 2019 Q2 ) * 100

Percentage change = (( 19,486.5 - 21,329.9 ) / 21,329.9) * 100

Percentage change = ( -1,843.4 / 21,329.9 ) * 100

Percentage change = ( -0.08642 ) * 100

Percentage change = - 8.642

There is 8.642% decline in GDP from 2019 Q2 to 2020 Q2

The decline in GDP is because of the negative shocks to production and consumption provided by the Coronavirus pandemic.

The pandemic has led the economy into recession.

Quarantine and lockdown measures to curb the virus has resulted in closing all the manufacturing, retail, etc units. Which means decline in production and increased unemployment.

Decline in output and incomes.

Lower consumer and business confidence in the economy and very high uncertainty because of the Coronavirus pandemic has resulted in decline in demand by consumers for consumer goods and businesses for capital goods. Lower demand leads to lower production thus lower GDP.

Q2Give the values of each of the 4 components of GDP in 2020 Q2.

Personal consumption expenditure = $13,046.7 billion

Gross private domestic investment = $3,134.2 billion

Net exports = $536.8 billion

Government expenditure = $3,842.4 billion

Q3Calculate the share (percentage) of each component within total GDP in 2020 Q2. Show your work. Identify the largest component of GDP.

Personal consumption expenditure = $13,046.7 billion

GDP in 2020 Q2 = $19,486.5 Billion

Personal consumption expenditure Percentage of GDP = 13,046.7 / 19,486.5 * 100

Personal consumption expenditure Percentage of GDP = 0.6695 * 100

Personal consumption expenditure Percentage of GDP = 66.95%

Gross private domestic investment = $3,134.2 billion

GDP in 2020 Q2 = $19,486.5 Billion

Gross private domestic investment Percentage of GDP = 3,134.2 / 19,486.5 * 100

Gross private domestic investment Percentage of GDP = 0.1608 * 100

Gross private domestic investment Percentage of GDP = 16.08%

Net exports = $-536.8 billion

GDP in 2020 Q2 = $19,486.5 Billion

Net exports Percentage of GDP = -536.8 / 19,486.5 * 100

Net exports Percentage of GDP = -0.0275 * 100

Net exports Percentage of GDP = -2.75%

Government expenditure = $3,842.4 billion

GDP in 2020 Q2 = $19,486.5 Billion

Government expenditure Percentage of GDP = 3,842.4 / 19,486.5 * 100

Government expenditure Percentage of GDP = 0.1971 * 100

Government expenditure Percentage of GDP = 19.71%

Largest component of GDP is consumption expenditure.

Q4Did these components increase or decrease from the previous quarter (2020 Q1)? Calculate the percentage change and comment.

Personal consumption expenditure Q1 2020 = $14,545.5 billion

Personal consumption expenditure Q2 2020 = $13,046.7 billion

There is decline in Personal consumption expenditure from Q1 to Q2 2020.

Percentage change = 13,046.7 - 14,545.5 / 14,545.5 * 100

Percentage change = -1,498.8 / 14,545.5 * 100

Percentage change = -0.1030 * 100

Percentage change = -10.30%

Gross private domestic investment Q1 2020 = $3,675.9 billion

Gross private domestic investment Q2 2020 = $3,134.2 billion

There is decline in Gross private domestic investment from Q1 to Q2 2020.

Percentage change = 3,134.2 - 3,675.9 / 3,675.9 * 100

Percentage change = - 541.7 / 3,675.9 * 100

Percentage change = - 0.1473 * 100

Percentage change = - 14.73%

Net exports Q1 2020 = $-494.3 billion

Net exports Q2 2020 = $-536.8 billion

There is decline in Net exports from Q1 to Q2 2020.

Percentage change = - 536.8 - - 494.3 / - 494.3 * 100

Percentage change = -42.5 / - 494.3 * 100

Percentage change = 42.5 / 494.3 * 100

Percentage change = 0.0859 * 100

Percentage change = 8.59%

Government expenditure Q1 2020 = $3,834.1 billion

Government expenditure Q2 2020 = $3,842.4 billion

There is increase in Government expenditure from Q1 to Q2 2020.

Percentage change = 3,842.4 - 3,834.1 / 3,834.1 * 100

Percentage change = 8.3 / 3,834.1 * 100

Percentage change = 0.0021 * 100

Percentage change = 0.21%