The economic indicator known as Gross Domestic Product (GDP) represents the dollar value of all purchased goods and services over the course of one year. It is comprised of purchases from all private and public consumption, including for profit, nonprofit and government sectors.

There are four components that are added to calculate the GDP:

  • Consumer spending
  • Government spending
  • Investment spending (this includes business, inventory, residential construction and public investment),   Net exports, meaning the value of goods exported minus the value of goods imported

The government calculates and publishes the GDP rate on a quarterly basis and for the entire year.

What Affects GDP?

There are different ways GDP is measured. For example, nominal GDP refers to a straight calculation of raw data, while real GDP adjusts the calculation to include the impact of inflation.

When inflation increases, the GDP tends to rise; when prices drop, so does the GDP. Be aware that this adjustment can happen even when there is no change in the quantity of goods and services produced in the United States during that time frame.

A key component of the GDP calculation is net exports. This number rises when the country sells more goods and services to foreign countries than it buys from them. A trade surplus means the United States sells more than it purchases, which is a strong contributor to GDP. When the United States buys more foreign goods than it sells, this creates a trade deficit, which is a negative weight in the GDP calculation.

GDP also reflects demand. The dollar output of certain sectors and industries rises and falls based on the popularity of their products and services. For example, when a new product is well received, then those sales increase that sector’s contribution to the GDP. This is a helpful measure because it enables companies to make better research and development decisions based on recent success. The same is true when a new product, or even an upgrade to a new product, does not increase sales.

What Does GDP Indicate?

The GDP is the most common, broad-based measure used to monitor the country’s economic progress. When it is on the rise, the economy is considered to be growing. When the GDP rate drops – even if it remains in positive territory – the economy is viewed as contracting. If it continues to slip quarter after quarter, it is an indicator that the economy might be in trouble and the Federal Reserve or Congress could consider altering monetary (interest rates) or fiscal (taxes and government spending) policy to inject cash into the nation’s financial system.

Technically, economists define a recession as a prolonged period of economic decline, often precipitated by two consecutive quarters of negative GDP growth.

This economic yardstick also is used to indicate a country’s general standard of living. The better a country is able to produce the goods and services that its residents and businesses use, the more that capital is infused back into the country. Therefore, higher GDP levels indicate a more prosperous country and relatively higher standard of living among its residents.

The GDP doesn’t just gauge domestic economic health, it serves as a comparison measure to other countries. This is particularly important during periods of growth and decline, when the United States can track how well it is responding to global economic factors relative to other countries.

Current Trendline

According to the Bureau of Economic Analysis, first quarter real GDP closed at 3.1 percent. In the second quarter, real GDP fell to 2.0 percent. The advanced assessment for the third quarter of 2019 is 1.9 percent.

 


85 Comments

Ian Bulick · January 31, 2024 at 11:25 am

Insightful piece

Fredrick Holderfield · February 6, 2024 at 11:53 am

Outstanding feature

Msvnnk · March 12, 2024 at 5:23 pm

oral atorvastatin 20mg lipitor uk atorvastatin 80mg brand

Fsahfl · March 14, 2024 at 4:54 am

buy cheap generic cipro – buy generic ethambutol order augmentin for sale

Qtcmhx · March 15, 2024 at 1:31 am

order cipro 1000mg online – order septra online order augmentin generic

Uoqsti · March 17, 2024 at 12:24 am

order metronidazole – buy generic cefaclor order azithromycin online cheap

Gegexk · March 18, 2024 at 10:36 am

buy generic ciprofloxacin – buy chloramphenicol order erythromycin pill

Sliztj · March 19, 2024 at 5:07 am

valtrex order online – buy mebendazole 100mg pills buy zovirax 400mg without prescription

Jrcibc · March 20, 2024 at 2:02 pm

stromectol in canada – tetracycline online buy tetracycline sale

Ajlazo · March 21, 2024 at 10:35 am

where can i buy flagyl – buy generic amoxil over the counter brand azithromycin

Ytjlch · March 22, 2024 at 4:33 pm

ampicillin antibiotic buy cheap ampicillin amoxicillin usa

Uxlkht · March 22, 2024 at 10:36 pm

buy furosemide generic diuretic – cost atacand 16mg buy capoten 25 mg online cheap

Vssjsx · March 26, 2024 at 4:20 am

buy zidovudine 300 mg pills – purchase rulide without prescription cheap allopurinol

Zmyzxk · March 26, 2024 at 9:39 am

metformin 1000mg over the counter – order cefadroxil 500mg online cheap lincocin over the counter

Lzfwav · March 28, 2024 at 8:20 pm

clozapine pill – famotidine 20mg usa buy pepcid 20mg for sale

Vwqxgg · March 29, 2024 at 3:25 am

buy seroquel online cheap – purchase bupron SR generic buy eskalith pill

Ymxfmx · March 31, 2024 at 4:18 am

purchase hydroxyzine without prescription – oral escitalopram 20mg buy endep 25mg pill

Fodaak · March 31, 2024 at 2:35 pm

anafranil where to buy – order paxil 10mg without prescription doxepin 25mg for sale

Harxpf · April 3, 2024 at 6:57 pm

amoxil tablet – how to get erythromycin without a prescription order generic cipro 1000mg

Ajiigb · April 4, 2024 at 4:25 pm

order augmentin 375mg for sale – order bactrim generic order cipro pills

Kliknij aby dowiedzieć się więcej · April 5, 2024 at 2:44 pm

Outstanding feature

Czytaj dalej · April 5, 2024 at 11:45 pm

great article

Yxutcg · April 9, 2024 at 3:01 am

cleocin 300mg us – order cefpodoxime 200mg generic buy chloramphenicol medication

Xngsap · April 10, 2024 at 4:29 pm

purchase zithromax – order floxin 400mg sale order generic ciprofloxacin 500 mg

Jzdjmb · April 12, 2024 at 6:04 pm

buy albuterol medication – buy advair diskus tablets theophylline 400 mg sale

Jqpmoa · April 13, 2024 at 9:19 am

ivermectin for covid – doryx online buy cefaclor 500mg price

Ooawea · April 15, 2024 at 3:10 am

buy clarinex 5mg without prescription – ventolin 4mg tablet purchase albuterol pill

Tgrsyy · April 16, 2024 at 10:25 am

methylprednisolone 4mg pills – buy azelastine nasal spray for sale astelin price

Ytrbsm · April 19, 2024 at 4:09 am

order prandin 1mg online – pill prandin jardiance cheap

Ivnpwg · April 20, 2024 at 2:43 pm

glycomet uk – januvia 100 mg price acarbose 25mg us

Ysdhjw · April 21, 2024 at 9:31 pm

order terbinafine 250mg without prescription – diflucan 200mg over the counter buy grifulvin v generic

Tnpzrl · April 23, 2024 at 1:05 pm

rybelsus us – purchase glucovance generic where to buy DDAVP without a prescription

Zvbquo · April 24, 2024 at 12:41 am

nizoral 200 mg oral – order sporanox 100mg online buy sporanox generic

Gelarw · April 26, 2024 at 2:07 am

lanoxin order – order lanoxin generic buy lasix pill diuretic

Qxdcra · April 26, 2024 at 3:24 pm

buy famciclovir 250mg for sale – order famciclovir pills valcivir 1000mg usa

Brdetz · April 28, 2024 at 4:10 am

microzide 25 mg without prescription – bisoprolol 10mg us order bisoprolol 10mg generic

Hmsnzu · April 29, 2024 at 6:50 pm

order lopressor 50mg without prescription – buy olmesartan without prescription buy nifedipine 30mg sale

Acujlw · April 30, 2024 at 4:19 am

buy cheap nitroglycerin – buy combipres sale valsartan generic

Xdlbar · May 2, 2024 at 8:23 pm

rosuvastatin pills seat – pravastatin buy milk caduet pills calm

Mlcqle · May 4, 2024 at 3:37 pm

simvastatin thief – gemfibrozil tight purchase lipitor online

Szlnad · May 5, 2024 at 2:43 am

buy viagra professional bush – buy cialis professional hollow levitra oral jelly clerk

Mvznaa · May 7, 2024 at 5:24 pm

cenforce flash – cenforce online surprise brand viagra plant

Nefboa · May 7, 2024 at 6:11 pm

priligy toward – cialis with dapoxetine invent cialis with dapoxetine plate

Rxinfw · May 10, 2024 at 9:52 am

brand cialis avoid – viagra soft tabs pale penisole motion

Mkqijt · May 11, 2024 at 3:18 am

cialis soft tabs online effect – tadarise fill viagra oral jelly online night

Tpfbpn · May 12, 2024 at 8:06 pm

brand cialis shower – penisole rapid penisole explode

Cwrzjw · May 13, 2024 at 11:18 pm

cialis soft tabs online sugar – cialis soft tabs conscious viagra oral jelly online tip

Owkzee · May 17, 2024 at 11:35 pm

cenforce online ray – zenegra online clumsy brand viagra online twelve

Rjnhqw · May 19, 2024 at 5:56 pm

acne treatment himself – acne treatment monk acne treatment guess

Ladxcy · May 21, 2024 at 3:41 am

asthma medication whistle – asthma medication current inhalers for asthma orange

Zglpbq · May 21, 2024 at 2:21 pm

uti treatment expect – treatment for uti row treatment for uti terrace

Fzoodt · May 22, 2024 at 11:48 pm

prostatitis medications starve – prostatitis pills quiver pills for treat prostatitis repair

Ekdloi · May 23, 2024 at 1:01 pm

valacyclovir online squat – valtrex online dig valtrex pills full

Wrmyem · May 25, 2024 at 8:00 pm

loratadine thoughtful – claritin road claritin pills vain

Klwfra · May 27, 2024 at 12:35 am

claritin pills someone – loratadine medication love claritin pills widow

Yyykdk · May 28, 2024 at 6:46 am

dapoxetine driver – priligy glitter dapoxetine struggle

Oolekx · May 30, 2024 at 4:16 am

promethazine nor – promethazine grand promethazine climb

Yctjcz · May 31, 2024 at 11:42 am

ascorbic acid hungry – ascorbic acid huddle ascorbic acid triumph

Tkxdit · June 2, 2024 at 12:44 am

florinef pills easy – lansoprazole pills watch lansoprazole relative

Vdtrlt · June 2, 2024 at 11:55 am

biaxin party – albendazole pills bottle cytotec pills run

Cpkvkx · June 6, 2024 at 2:54 am

buy dulcolax 5mg pills – liv52 order purchase liv52 pills

Ypahfe · June 7, 2024 at 8:28 am

buy aciphex 10mg pills – purchase domperidone without prescription buy motilium 10mg pill

Axmbdv · June 8, 2024 at 4:48 pm

cotrimoxazole cost – tobra 10mg ca tobramycin 5mg oral

Otzujg · June 10, 2024 at 6:13 am

purchase hydroquinone generic – buy desogestrel order dydrogesterone online cheap

Nqnbve · June 10, 2024 at 7:14 pm

dapagliflozin 10mg pills – purchase acarbose online order acarbose 25mg pills

Keptdv · June 12, 2024 at 7:55 am

fulvicin online buy – generic lopid 300mg cheap lopid 300 mg

Yooxrk · June 13, 2024 at 5:19 am

buy vasotec 5mg sale – enalapril 5mg cost zovirax for sale

Lqvquj · June 14, 2024 at 6:11 am

pill dramamine 50mg – pill prasugrel 10 mg buy risedronate sale

Fvgnje · June 15, 2024 at 3:06 pm

buy feldene 20mg online cheap – generic piroxicam order exelon 3mg online cheap

Trsycj · June 16, 2024 at 6:46 am

purchase monograph generic – buy generic etodolac for sale buy cheap generic cilostazol

Hcpuur · June 26, 2024 at 3:10 am

buy hydrea sale – trecator sc us robaxin where to buy

Ikmpze · June 26, 2024 at 9:53 am

piracetam uk – buy generic nootropil 800 mg buy sinemet 20mg

Wxupcj · June 30, 2024 at 4:02 am

cheap norpace sale – epivir canada buy thorazine 100mg

Qhfzzf · June 30, 2024 at 3:09 pm

depakote 250mg tablet – buy depakote 500mg pills topamax us

Mzbqtz · July 3, 2024 at 4:24 pm

buy aldactone 25mg pills – dilantin price cost naltrexone

Iauueg · July 7, 2024 at 4:42 am

ondansetron online order – purchase oxytrol without prescription purchase requip pills

Syykgf · July 7, 2024 at 5:25 am

where to buy cyclobenzaprine without a prescription – purchase flexeril pill vasotec price

Vlnyyo · July 9, 2024 at 11:40 pm

ascorbic acid 500 mg generic – order isordil generic order compro without prescription

Fxtojj · July 10, 2024 at 5:02 am

buy durex gel for sale – how to purchase durex condoms xalatan where to buy

Fpsbrx · July 14, 2024 at 5:34 am

arava brand – actonel 35 mg pills purchase cartidin

Xojrbk · July 14, 2024 at 11:21 pm

order minoxidil generic – rogaine cheap proscar pill

Xnqkni · July 16, 2024 at 4:01 am

tenormin 100mg canada – brand atenolol purchase carvedilol online

Zxmdgo · July 17, 2024 at 3:20 pm

calan cost – tenoretic order online buy tenoretic pill

Lsvfic · July 18, 2024 at 4:47 am

atorlip generic – order atorvastatin without prescription order nebivolol 20mg without prescription

Dkonlw · July 20, 2024 at 3:28 pm

lasuna order online – buy himcolin pills buy himcolin tablets

Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *