Effective Presentation Mariam Kenyab “ Economic growth is the raise in price of the goods and services created by an economy. ” (GDP Growth Definition, n. d. , para1). It is measured by the percent rate of increase and calculated in real terms, for example: inflation- adjusted terms to net in the result of inflation on the price of the goods and services produced. The GDP per capita is frequently used as a pointer as the average of living for individuals in a specific area, and economic growth means the increase in the average standard of living.
Though, there are a few struggles in using the GDP per capita to calculate the general well being. For example: 1- GDP does not provide any information relevant to the sharing of income in a country. 2- GDP doesn’t consider the negative externalities from pollution resultant to financial growth. 3- GDP doesn’t consider the positivity that may happened from services such as learning and health. 4- GDP keeps out the worth of all the actions that take place outside of the market place. The flaws of GDP are essential when learning about public policy, but it lean to be a good pointer, for the economic growth in the long run.
Economic growth is exponential, where the supporter is resolute by the PPP annual GDP increase rate. Therefore, the differentiation in “ the annual growth from country A to country B will multiply up over the years. For example, a growth rate of 5% seems similar to 3%, but over two decades, the first economy would have grown by 165%, the second only by 80%” (GDP Growth Definition, n. d. , para3). This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent. Country | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | | United States | 4. | 5 | 0. 3 | 2. 45 | 3. 1 | 4. 4 | 3. 2 | 3. 2 | 2 | 1. 1 |-2. 6 | 2. 8 | | How to Calculate Gross Domestic Products? The GDP is calculated using three methods: 1. ) The sum value of final good or services produced by a country. 2. ) Total sum of value added to services and ending merchandise at each phase of manufacturing by all in that country. 3. ) Total sum produced income during the production stages, which contain income, taxes and tariffs on merchandise and payment (wages) of labours. Interpreting GDP The level of GDP divided by the population of a region.
Changes in real GDP per capita are frequently interpreted as a modification in the average of living in that region, although it could be confusing because it doesn’t account for differentiation in the sharing of profits across reasons of manufacture and individuals, and it doesn’t keep the price of unpaid workers. (Stanford, 2008) Obtaining GDP Statistics GDP numbers is published as part of statistical information, which is called the “ national accounts. ” They are frequently created on a quarterly basis (which is every three months) GDP statistics are organized and published by national statistical organization in every country.
Some electronic report can be downloaded without charge. Regarding to the U. S. the GDP information is created by the Bureau of Economic Analysis, www. bea. gov. Follow the links through the “ National” menu category to “ Gross Domestic Product. ” That section presents several options for accessing the most recent GDP data release, historical data, and background detail. (Stanford, 2008) GDP Trends: During the great depression, the economy fell 1. 8% in the first quarter of 2008 with the Bear Stearns bailout, but resumed 1. 3% growth by the second quarter of the same year.
The economy shrank 3. 7% in the third quarter when the banking system imploded. GDP plummeted 6. 4% in the first quarter of year 2009. The economic stimulus package started to work: the economy shrank only . 7% in Q2. It finally grew 2. 2% in Q3 and 5. 6% in Q4 When the economy grew 2. 5% in 2003 after the financial crisis was over. In 2004, it become larger 3. 6%, and was slowed only briefly (2. 9%) in 2005 by Hurricane Katrina. The economy peaked at 4. 8% by 2006 and by the end of the year; the economy only grew 2. 7%. (Amadeo, n. d. ) References: – United States GDP Growth Rate. n. d. ).
Retrieve from: http://www. tradingeconomics. com/united-states/gdp-growth – (n. d. ). Retrieve from: http://www. indexmundi. com/g/g. aspx? c= us&v= 66 – Gross Domestic Products – GDP. (n. d. ). Retrieve from: http://www. studyforex. com/gross-domestic-products. html – Jim Stanford. (2008). A “ HOW-TO” GUIDE: FINDING AND INTERPRETING GDP STATISTICS. Retrieve from: http://www. economicsforeveryone. ca/files/uploads/How_To_GDP_Stats. pdf – Kimberly Amadeo. (n. d. ). What Is GDP?. Retrieve from: http://useconomy. about. com/od/grossdomesticproduct/p/GDP. htm
