Economic Homework 5

ECO 301: Economic Theory

Week 5 Assignment: Gross Domestic Product

Part 1

Obtain data about 2012 gross domestic product at www.bea.gov to complete the table below.

· When completing this table, recall that Y = C + I + G + NX.

· Use the most recent Consumer price Index reported by the Bureau of Labor Statistics.

GDP and Its Components

	Total (in billions of dollars)	Per Person (in dollars)	Percent of Total
Gross Domestic Product, Y
Consumption, C
Investment, I
Government purchases, G
Net exports, NX

Part 2

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 West Writing Style Handbook guidelines.