Case Study: GDP
Web Quest
Name:
Part I: Final v. Intermediate Goods
Directions:
(.5 point each)
Determine if each of the items listed below is an example of
a final good or an intermediate good.
1. Manicures
2. Bread
3. Window glass in a new convertible
4. Lumber in a new house
5. Flour for baking bread
6. Sneakers
7. Milk that WAWA purchased
8. Steel used to produce cars
Part II:Components of GDP
Directions:
(1 pt each)
Determine if each of the items listed below should be included in GDP, and
under which component or components:
Consumption, Investment, Government, Exports, and/or Imports.
1. Stereo produced and sold in the US by a Japanese company
2. College Tuition paid to PENN STATE
3. Social Security payments
4. Starbucks stock purchased from Starbucks
5. Building of a new air force base
6. The purchase of a Delta Airways plane ticket in Rome, Italy
7. The purchase of a U.S. Government Savings Bond by an individual
8. A new factory to produce chocolate bars
9. The sale of a previously occupied house
10. A box of Swiss chocolates (made in Switzerland), sold in the US
11. A HD TV produced, but not sold
12. Home cooked chocolate cake
13. Dinner at PF Chang’s
14. A computer produced in the US and sold in Canada
15. A new interstate highway
Part III: Calculating GDP
The equation for calculating GDP is …
GDP = ___ + ___ + ___ + _______
Directions:
1.
Given the following data (in billions of dollars), calculate the total GDP.
*Not all the amounts provided will be used in your calculation.
(3 pts)
Consumption Spending
Social Security Payments
Income Tax Receipts
Exports
Business Purchases of new factors and equipment
Federal Government spending on goods/services
Construction of new homes
State and local spending on goods and services
Imports
7,000
500
1,000
1,500
1,600
500
200
1,300
1,500
TOTAL GDP
2. If consumers begin purchasing automobiles manufactured abroad instead of those
manufactured in the US, what will happen to GDP? (3pts)
3. Discuss two limitations of GDP & provide examples to support your answer. (4pts)
Part IV: Analyzing BEA Data
Directions:
Using the Bureau of Economic Analysis website (www.bea.gov),
locate the National Income and Product Accounts (NIPA) Table for Gross Domestic Product.
Step by Step:
1. Go to www.bea.gov and click on Gross Domestic Product (GDP) under “‘National, Access National Economics Accounts Data”
2. Under Gross Domestic Product (GDP), click on “Interactive Tables: GDP and the NIPA Historical Tables”
3. Click on “Choose one of the Frequently Requested NIPA Tables”
4. Click on the fourth table listed, “Table 1.1.6: Real Gross Domestic Product, Chained Dollars (A) (Q)”
5. Use the “Data Table Options” tool at the top of the page to collect the required data
Using table below, track GDP, Personal Consumption Expenditures (“C”), Gross Private Domestic Investment (“I”), Net Exports of
Goods and Services (“X-Im”), and Government Consumption Expenditures and Gross Investment (“G”) yearly from 2002-2007.
Additionally, since yearly data is not yet available for 2008, track the quarterly changes in 2008 (Q1 & Q2 & Q3). (10pts)
Series
Type
GDP
C
I
X-Im
G
2002
yearly
2003
yearly
2004
yearly
2005
yearly
2006
yearly
2007
yearly
2008
Q1
2008
Q2
2008
Q3
Data Analysis Questions
1. Examine the data you just collected. Discuss is the general trend of GDP yearly from 2002 to 2007
(3pts)
Discuss how this compares to the quarterly data from 2008 – Q1 & Q2 & Q3
2. Calculate the yearly increase (or decrease) in GDP from year to year
2002 to 2003:
(1pt each)
Formula for Percent Change
2005 to 2006:
2003 to 2004:
2004 to 2005:

2006 to 2007:
Most recent year – Older Year x
Older Year
Based on your results, what can you say about the general growth of GDP yearly?
100
(2 pts)
3. Discuss the general trends of each sector of spending (C, I, G, X-Im), based the yearly data from 2002 to 2007, and
quarterly data from 2008 – Q1 & Q2 & Q3
(2pts each)

C:

G:

I:

X - Im: