Measuring the Economy’s Performance

 Week 2 ProjectInstructions

Measuring the Economy’s Performance

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For this assignment, you should use the information in the textbook and the information found on the official government website: www.bea.gov/index.htm

Based on the information contained in the textbook and on the Web site above, answer the following questions:

  1. What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008?
  2. What was national income (NI) for 2008? What does national income tell us? What is the difference between GDP and NI? How has NI changed since 2008? What caused these changes?
  3. What was disposable income (DI) for 2009? What does disposable income consist of? How did DI change from 2008? What caused these changes?
  4. Does GDP measure the well-being of society? Why or why not?
  5. What was GDP in 2008 (sometimes called GSP) for your state? How does your state rate when compared to other states?

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