The Calculation of GNP Essay Example | Topics and Well Written Essays - 750 words

The Calculation of GNP - Essay Example 120 x 22 = 2640. In 2005, 210 tennis racquets were sold. 210 x 120 = 25,200. 2640 + 25,200 = 27, 840. Leave 2004 alone the base year. In 2004, 100 CDs were sold. 100 x 22 = 2200. In 2004, 200 tennis racquets were sold. 200 x 120 = 24,000. 2200 + 24,000 = 26,200. Percent Growth = 100% x ((27,840-26,200)/26,200)) Percent Growth = 7.02% Utilizing 2005 as a base year, the genuine GDP for 2004 is 26,200 and the genuine GDP for 2005 is 840. This shows an expansion of 7.02%. 10/10 4. Survey GDP over most recent 5 years from BEA's site and sum up trends> Discuss a few occasions which may have caused these patterns. In spite of the fact that the most recent five years didn't encounter any downturns, the years 2000 and 2001 were depressed spots in financial development. Unexpectedly, the 1960s, 1970s, 1980s, and 1990s, all observed downturns in their initial scarcely any years, so this easing back of financial development right off the bat in the decade isn't unordinary (Orszag 2001). Like in different decades, after these initial not many moderate years, the development rate starts to quicken again step by step through 2002 and 2003. Now (late 2003, mid 2004) we see a time of especially quick development (2003q3 9.3%, 2003q4 5.5%, 2004q1 8.1%) (Bureau of Economic Analysis, 2006). This may have been brought about by government activities to give the economy a momentary lift for the time of the political race (2004). On the off chance that these activities were placed into play part of the way through 2003, it's conceivable that they were very fruitful at first however just for a brief timeframe, and not exceptionally far into 2004. In spite of the fact that the GDP ascends in the 2004 and 2005, it's development has been decelerating somewhat in the course of recent years. Still it remains genuinely steady. The ongoing soundness of the economy, in spite of incredibly high vitality costs, can be ascribed to the generally... Now (late 2003, mid 2004) we see a time of especially quick development (2003q3 9.3%, 2003q4 5.5%, 2004q1 8.1%) (Bureau of Economic Analysis, 2006). This may have been brought about by government activities to give the economy a transient lift for the time of the political race (2004). In the event that these activities were placed into play part of the way through 2003, it's conceivable that they were very effective at first however just for a brief timeframe, and not far into 2004. In spite of the fact that the GDP ascends in the 2004 and 2005, it's development has been decelerating somewhat in the course of recent years. Still it remains genuinely steady. The ongoing strength of the economy, regardless of very high vitality costs, can be ascribed to the generally low joblessness rate all through the most recent year (Sniderman, 2006). Sniderman, M. (April 2006). The Economy in Perspective. Exploration Department of the Federal Reserve Bank of Cleveland. Recovered April 15, 2006, from www.clevelandfed.org/Research/ET2006/0306/eip.pdf. Two some time ago lacking economies, that of Singapore and that of Hong Kong, have demonstrated remarkable development in the previous fifty years. In any case, creating nations would profit more from following a monetary model like that of Singapore given the current financial patterns and conditions.