GDP measures the market value of the goods and services a nation produces. Unpaid work that people
do for themselves and their families isn't traded in the marketplace, so there are no transactions to track.
Surveys asking people how they spend their time can be used to estimate household production. But
the United States only began collecting these data annually in 2003, and many countries have never
done a nationally representative survey. The lack of reliable data influenced the decision to leave
household production out of GDP in the internationally accepted guidelines for national
accounting.“(Burea of Economic Analysis website)
In this threaded discussion, complete the following:
1. Begin your discussion with a definition of Gross Domestic Product. Be sure to include a
definition of GDP and a statement of the size of GDP in the most recent year for the United
States.
1. Locate and incorporate outside research that gives evidence and explanation of the value of
home production that is not included in GDP. Some areas to research could include watching
your own children compared to hiring someone, doing your own lawn care, fixing your own car,
doing your own housework, etc.
1. During the pandemic, many people worked from home and decreased activities in the
economy. Do you believe this caused an increase in GDP or a decrease? Explain how you
reached this conclusion.
1. Integrate biblical insights into your discussion thread. In what way does scripture influence our
decision to work, either in the marketplace or in home production?
Principles of Macroeconomics
Name
Institution
Date
Begin your discussion with a definition of Gross Domestic Product. Be sure to include a
definition of GDP and a statement of the size of GDP in the most recent year for the United
States.
GDP entails the total market or monetary value based on all the finished services or goods a
country produces within a specific period. In other words, the gross domestic product means the
total domestic production, which usually operates as a country's economic scorecard (Ockert,
2022). Reports suggest that America's current-dollar GDP seemed to increase by at least 10.1
percent. This means that the GDP will be $2.10 trillion by 2021 (Ockert, 2022). However, the
GDP decreased by 2.2 percent, thus $478.9 trillion the previous year.
Locate and incorporate outside research that gives evidence and explanation of the value of
home production that is not included in GDP. Some areas to research could consist of
watching your own children compared to hiring someone, doing your own lawn care, fixing
your own car, doing your own housework, etc.
It should be known that GDP usually measures the value based on services and market goods
that a country produces. However, it fails to highlight or incorporate some of the values based on
home production. Typically, it does not address the unpaid work people engage in or where
families tend to be involved (Eberly et al., 2021). This is because most of these activities are not
usually addressed in the marketplace. Therefore, there are no any transactions linked to these
activities.
During the pandemic, many people worked from home and decreased activities in the
economy. Do you believe this caused an increase in GDP or a decrease? Explain how you
reached this conclusion.
A baseline global pandemic in 2020 seemed to decrease the GDP by at least 2%. This
means that the globe's GDP benchmark has been reduced extensively. This affected the industrial
countries and the developing nations. The situation was worsened by the fact that people were
forced to work from home (Eberly et al., 2021). Working from home also means that
productivity is reduced extensively. It also means that not all people could work from home;
hence there was a sharp production decrease in most countries.
Integrate biblical insights into your discussion thread. In what way does scripture influence
our decision to work in the marketplace or home production?
The Bible has been vocal about the need to work and fulfill our desires. To some extent,
the Bible states that those that will not work must not eat. Colossians 3:22 indicates, "You who
are servants who are owned by someone, obey your owners. Work hard for them all the time, not
just when they are watching you. Work for them as you would for the Lord because you honor
God.”( Wright, 2004). This means that a man's survival depends on his ability to work, thus
either being part of home production or the marketplace.
References
Eberly, J. C., Haskel, J., Mizen, P., & National Bureau of Economic Research. (2021). "Potential
capital", working from home, and economic resilience. Cambridge, Mass: National
Bureau of Economic Research.
Ockert, S. (2022). Business statistics of the United States: Patterns of economic change, 2021.
Lanham : Bernan Press, 2022.
Wright, C. J. H. (2004). Old and New Testament ethics for the people of God. Downers Grove,
Illinois : IVP Academic, [2004]
