Nominal GDP and Real GDP Components

	Nominal GDP	Real GDP
Gross domestic product	26,798.6	20,386.5
Personal consumption expenditures	18,301.6	14,419.9
Gross private domestic investment	4,615.5	3,608.4
Net exports of goods and services	-804.7	-1212.2
Government consumption expenditures and gross investment	4,686.3	3,513.3

Percentage of GDP Components

	Nominal GDP (%)	Real GDP (%)
Personal consumption expenditures	68.29%	70.73%
Gross private domestic investment	17.22%	17.69%
Net exports of goods and services	-3.00%	5.94%
Government consumption expenditures and gross investment	17.48%	17.23%

1. Why was the nominal GDP greater than the real GDP? By how much? 2. GDP is composed of a number of categories. What category makes up the largest portion of GDP? What category makes up the smallest portion of GDP? 3. What is "Gross private domestic investment"? What does gross private domestic investment measure? 4. What is "Net exports of goods and services"? Why it is negative? 5. In the left part of the table 3 (nominal GDP) find the category "National defense". How much was the National defense for the last quarter? Answer: -0.11 Calculate percentage of National defense out of "Government consumption expenditures and gross investment". Calculate percentage of National defense out of GDP. 6. Please analyze and discuss the significance of the data that was received for this Data exercise. 7. Reflect on what was learned from this exercise.

Answer rating: 100% (QA)

Answer Nominal GDP is greater than real GDP due to inflation Nominal GDP measures the value of goods and services produced in an economy at current ma... View the full answer