Explain how GDP is calculated Go to the Bureau of Economic A

Explain how GDP is calculated. Go to the Bureau of Economic Analysis website, www.bea.gov, and access the BEA interactively by selecting \"National Accounts\" and then \"National Income and Product Account Tables.\" Select \"Frequently Requested NIPA Tables,\" and find Table 1.1.1 on GDP. What is the current GDP growth rate for the U.S.?

Please use the current table/data to answer this question. Thanks

Solution

(a) GDP is calculated using Expenditure approach (by summing up consumption demand, investment demand, government spending and net exports), Income approach (summing up income received by all the factors of production) or Value added approach (summing up the value added at each stage for goods and services produced).

(b)

GDP growth rate for US, 2015 (compared to 2014) = 3.4% (Current dollars)

GDP growth rate for US, Q4 2015 (compared to Q3 2015) = 1.5%

Source: BEA Data table for GDP growth rate (http://www.bea.gov/national/index.htm#gdp)