Gross Domestic Product

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30th August 2015
Part 1
(a).Table.

GDP

2014, 3rd Quarter

2015, 4th Quarter

2015, 1st Quarter

2015, 2nd Quarter

1

Real Gross Domestic Product

16,068.8

16,151.4

16,177.3

16,324.3

2

Nominal Gross Domestic Product

17,522.1

17,615.9

17,649.3

17,902.0

(b). Report.
Based on the statistical representation of the data from the table above, it is very clear that the nominal GDP is greater than the real GDP in each of the respective quarters. The underlying reason for this is that the nominal GDP does not keep into consideration or allow for inflation. This is where the real GDP comes in, since it is well adjusted to keep in mind the current economic situation, specifically, the inflation rate.
In calculation of the percentage changes in the GDP between the 2nd and 1st quarter of the year 2015, it can be seen that there is a 0.91% growth in the real GDP, and a 1.43% growth of the nominal GDP respectively. The differences in the percentages between the two quarters are an indication of the varying inflation rates and the fact that the economy has grown.
Part 2.
(a).Table

2014 3rd Quarter

2014 4th Quarter

2015 1st Quarter

2015 2nd Quarter

Gross Domestic Product

17,522.1

17,615.9

17,649.3

17,902.0

Gross National Product

17,794.0

17,880.6

17,876.8

18,120.3

Net National Product

15,032.5

15,096.3

15,084.1

15,316.5

National
Income

15,256.5

15,358.2

15,336.4

15,437.4

Personal
Income

14,774.8

14,955.7

15,079.8

15,221.3

(b). Report.
Gross Domestic Product (GDP) is the yardstick used to measure a country’s total value, in terms of the production and services used by both its citizens as well as the foreigners who live within its geographical boundaries. Gross National Product is the yardstick used to measure a country’s worth, by value of its products and services, as used by its citizens only, both within, and outside its boundaries. Both GDP and GNP are calculated over a period of one year.
The differences between these two come not only from their respective definitions, but also a number of other factors.GDP is found as a result of the sum of consumption, investment, government spending and the difference between imports and exports. Gross national product meanwhile, is the sum of the GDP, the National Inflow from assets abroad, subtracted from the net outflow to foreign assets.GDP is used to measure the strength of the economy of a given country, while GNP is a measure of how the citizens of a given country are doing ,economically. From the table, in order to determine GNP from GDP, the following formula is key;
GNP =GDP+ Income receipts from the rest of the world-income payments to the rest of the world.
National Income is a measure of the circulation of goods or services, in monetary form, produced within a given economy, in a certain time period. National Income (NI) is important since it measures the average standards of living, the economic growth, and the distribution of income among the citizens of a given country. The GNP was greater than the NI in the first two quarters of this year by 2540 in the first quarter, and 2682.9 in the second quarter respectively.
In order to determine the NI from the GNP, it is important to use the following formula;
National Income= GNP- consumption of fixed capital-statistical discrepancy
National Income is made of various categories, such as rent, interest, wages and profits. Compensation of employees constitutes the largest element of National Income.
Part 3.
(a).Table.
Year 2014
Country

GDP

Population

Per Capita GDP

1

2

3

4 = 2/3

 Argentina

 540,197,457,444

 41803125

 12922.40

 Australia

 1,453,770,210,672

 23490736

 61886.96

 Brazil

 2,346,118,175,194

 202033670

 11612.51

 China

 10,360,105,247,908

 1364270000

 7593.88

 France

 2,829,192,039,172

 66201365

 42736.16

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