Locate current data for GDP for the U.S. (Go to the Bureau of Economic Analysis Web site (Links to an external site.). Click on "Interactive Tables:GDP and the National Income and Product Account (NIPA) Historical Tables (Links to an external site.)" and then "Begin Using the Data." Click the Drop-Down Arrow on Section 1 to find Table 1.1.1.
What are the annual growth rates for the U.S. economy over the last 5 - 10 years? Has GDP been growing or declining over this time-frame? Explain what factors might have caused GP to increase or decrease over this time-frame.
Next, what are the quarterly growth rates (annualized) for the U.S. economy for the last six quarters? What trends do you notice in these numbers? Does anything surprise you? Comment on GDP growth for the different components of GDP (C, I, G, and Xn) over this time frame?
Website::www.bea.gov (Links to an external site.)
GDP and Economic Well-being
Then read the following articles and answer these questions:
- Is GDP a good measure of economic well-being?
- Why, why not?
- What are its limitations?
- What are some factors that would lead to higher GDP in the U.S. but do not improve well-being?
Website Articles
The Economist Measuring What Matters (Links to an external site.)
The Donella Meadows Archive Why Should We Be Glad when the GNP Goes Up? (Links to an external site.)
The Donella Meadows Archive Gross National Happiness Measures Quality Of Life (Links to an external site.)
AMERICA 2.0: From Private Greed to Public Service What's wrong with the GDP? (Links to an external site.)