AB/204 AB204 AB 204 UNIT 4 DISCUSSION 1

AB 204 UNIT 4 DISCUSSION 1 

Unit 4: National Income Determination - Discussion

General Information:

To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates.

• First post made during, or before, Saturday.
• Posts on at least 3 different days.
• Responses to at least two other classmates.
• Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar.
• To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic.

National Income Determination (GDP)

The Discussion topics focus on how a nation’s income is measured using the Gross Domestic Product (GDP), and the specific areas of discussion include the various components of the GDP, the difference between nominal and real GDP, GDP and business cycles, and the limitations of the GDP in measuring economic welfare.

Respond to two of the following Discussion topics. Read Chapter 10, and remember to include references and links to the websites that you feel are important contributors to your posts (comments).

Topic 1

Economists use Gross Domestic Product (GDP) to measure the economic activity and the national income.

1. What are the major components of the USA GDP? Explain the contribution of each component to the GDP with data.
2. What is the difference between real Gross Domestic Product (GDP) and nominal GDP? What is the relationship between the real GDP and the business cycle?