Visit the Bureau of Economic Analysis Web site at www.bea.gov  In U.S. Economic Accounts under National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click “Begin using the data”, and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters.

a) Present the information that you received in your project as a table.

b) Write a report (1 page double - spaced), which contains the analysis of the results you received.

In this report consider, but do not be limited to the following:

1. Why was nominal GDP greater than real GDP in each of those quarters?
2. What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter?  What was the percentage change in Real GDP for the two quarters?
3. What accounts for the difference in the two percentages?

Part 2: Income Approach to Calculating GDP (weight 25% of the assignment grade)

Complete the following exercise:

Go to http://www.bea.gov/

Find the information on GDP in billions of current dollars for the past four quarters. In U.S. Economic Accountsunder National click on Gross Domestic Product (GDP), then click on Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables – click “Begin using the data”- choose Section 1: Domestic Product and Income and find table 1.7.5

 Create the table that contains the following information for the last year quarterly. Omit the intermediate lines found in Table 1.7.5 on the web site.

Gross domestic product

Gross national product

Net national product

National income

Personal income

Write a report in your own words (1 page, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following:

1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP?

2. Based on the table, what calculations must you make to determine GNP from GDP?

3. What is national income (NI)? What does NI measure?