Data Exercise 1: Consists Of Four Parts - Part 1 Expenditure

Data Exercise 1consists Of Four Partspart 1 Expenditures Approach To

Data Exercise 1 consists of four parts. Part 1: Expenditures Approach to Calculating GDP (weight 25%)

Complete the following exercise: Visit the Bureau of Economic Analysis website, select "National," then "Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables." Click “Begin using the data,” and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the nominal GDP and real GDP for the past four quarters.

a) Present the information received in your project as a table.

b) Write a double-spaced, one-page report analyzing the results, considering the following points:

- Why was nominal GDP greater than real GDP in each quarter?

- The percentage changes in nominal GDP and real GDP for the most recent quarter.

- The reasons for the differences observed.

Part 2: Income Approach to Calculating GDP (weight 25%)

Complete this exercise: Go to the NIPA Tables, Section 1, Table 1.7.5, to find GDP in billions of current dollars for the past four quarters. Create a table including: Gross Domestic Product (GDP), Gross National Product (GNP), Net National Product (NNP), National Income (NI), and Personal Income (PI).

Write a double-spaced, one-page report analyzing the data, considering:

- The differences between GDP and GNP.

- Calculations needed to derive GNP from GDP.

- The definition of national income (NI).

- Which was higher: GNP or NI? By how much?

- Calculations to derive NI from GNP.

- The main component of NI.

Part 3: GDP in Different Countries (weight 25%)

Using the World Development Indicators database, select the countries listed: the United States, Japan, China, Mexico, Russia, Switzerland, Sweden, Luxembourg. Fill in the table with each country’s GDP (in billions USD), population (in millions), and calculate per capita GDP using the formula:

Per Capita GDP = (2/3) * (GDP in billions USD / Population in millions).

Write a short, double-spaced report analyzing:

- The countries ordered from highest to lowest per capita GDP.

- Whether this order matches the total GDP rankings and reasons for any differences.

Part 4: Index of Economic Freedom (weight 25%)

Access the Heritage Foundation's website for the 2011 Index of Economic Freedom. Find the overall ranking and specific freedom indicators (business, trade, financial, property rights) for the countries in Part 3.

Analyze:

- The overall economic freedom ranking of these countries.

- Their rankings in individual indicators.

- How the overall and specific indicator rankings compare with the order based on per capita GDP.

Write a one-page, double-spaced report providing your analysis based on these findings.