The Gross Domestic Product ( Gdp ) Essay

The Gross Domestic Product ( Gdp ) Essay

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This paper will discuss the Gross Domestic Product (GDP), meaning the total market value of the country’s output (Case, 2017). I will explain the Expenditure approach and the four components used to calculate the GDP. I will also go over what is not included in the calculation and how inflation and unemployment relate to the growth of the GDP. In addition we will look at how the GDP reflects the economic welfare of our society and finally changes I would make and how they reflect a Christian world view.
First let’s look at the components of the Expenditure approach. By calculating the GDP as the sum of four categories of expenditures on output. The four categories used to make a formula to calculate they are; Personal Consumption Expenditures (C), Gross Private Domestic Investment (I), Government Consumption and Gross Investment. (G), Net Exports (EX - IM). This makes the formula GDP = C + I + G + (EX –IM). To understand further lets looks at the four components. Personal Consumption Expenditures is the largest and accounts for 68.5% of the calculation. It is further broken down in to three categories durable goods, nondurable goods, and payments for services. Durable goods are those that last awhile, like cars and furniture. Nondurable goods are used in a short amount of time, like food and clothing. Services are things bought that are not objects or physical items, and example would be doctor visits or education. The next part of the formula is the Gross Private Domestic Investment is the measure of physical investment used in computing and has three different types of investment. Nonresidential, Residential, and Change in business inventories. Government Consumption and Gross Investment is the money sent by the government...


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...moneybags that do not grow old, with a treasure in the heavens that does not fail, where no thief approaches and no moth destroys. For where your treasure is, there will your heart be also” (Luke 12:33-34). More and more people are donating or selling items they no longer need so that it may not be wasted. In addition many are buying from gently used stores and websites. I shop for used products often as do my friends, coworkers, and family. I believe we are not capturing a huge market in today’s economy God does not want us to be wasteful as doing so can harm the earth and be a loss for another who may need it. In John God said, And when they had eaten their fill, he told his disciples, “Gather up the leftover fragments, that nothing may be lost” (John 6:12). I hope that this paper gave you a better understand of the GDP and different factors that come in to play.

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