Wealth

Wealth

Watch the following video

What is Wealth?

Go to the Bureau of Economic Analysis site, www.bea.gov, and access the BEA interactively by selecting “Data” then “By Economic Account” then “National” then “Gross Domestic Product (GDP)” and then “Interactive Tables: GDP and National Income and Product Accounts (NIPA).” Select “Begin Using the Data” -“Section 1 – Domestic Product and Income” and use Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters then:

List the value for each of the last four quarters for both Nominal and Real GDP.
Why was nominal GDP greater than real GDP in each of those quarters? Can Real GDP be greater than nominal GDP? How? Answer all three questions.
Review all available data for ‘Durable Goods’ under Personal Consumption Expenditures at Table 1.1.6; what does the trend of the data indicate about the health of the economy presently? Why? Answer both questions.
Review all available data for ‘Fixed Investment’ under Gross Private Domestic Investment at Table 1.1.6; what does the trend of the data indicate about the health of the economy presently? Why? Answer both questions.
Review all available data for ‘Change in Private Inventories’ under Gross Private Domestic Investment at Table 1.1.6; what does the trend of the data indicate about the health of the economy presently? Why? Answer both questions.
According to the Skidelsky video, what is wealth? Why did the classical economists support business people over landlords and monarchs?
According to the Skidelsky video, who benefits and who does not benefit from growth according to the structuralists and the exploitation theorists? How does this differ from the Washington Consensus?
What part of the story of economic prosperity does GDP do a good job of measuring? How does GDP fall short as a measurement of economic prosperity?

Sample Solution

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