Economic Homework 5

Assignment: Gross Domestic Product

• Complete the Gross Domestic Product worksheet (Part 1)
• Write a 500-word response to the following:  Explain the difference between nominal and real GDP and why real GDP is necessary to compare prior years' data.
• Format your paper using the West Writing Style Handbook.
• Submit your work via My Assignments.

IMPORTANT:  When calculating the Per Person column, use the national population figure of 309 million.  And remember, that is 309,000,000.

The paper should address the following aspects:

• Definitions of real and nominal GDP.
• Discussion of the differences between real and nominal GDP measurements.
• Explain why the real GDP measure is necessary for historical comparisons.
• Is GDP a good measure of economic well-being?  Why or why not