Unit 3 Assignment: Economic Analysis of
GDP, Its Components, and Economic Growth
in the U.S."
Title Page
Project Title: Economic Analysis of GDP, Its Components, and Economic Growth in the
United States
Your Name
Course Number and Title
Professor’s Name
Date of Submission
Introduction
Briefly explain the purpose of the assignment.
Mention the importance of GDP analysis for understanding U.S. economic performance.
State the structure: Part 1 (Expenditure Approach), Part 2 (Income Approach), and
reflections.
Stress reliance on BEA data, textbook chapters, and credible news sources for analysis.
Part 1: Expenditure Approach to Calculating GDP
A. Data Collection & Presentation
Table 1: Most recent nominal GDP & real GDP broken into:
o Gross Domestic Product
o Personal Consumption Expenditures
o Gross Private Domestic Investment
o Net Exports of Goods and Services
o Government Consumption Expenditures & Gross Investment
Percentage calculations of each component (nominal and real).
Table 2: Defense spending as a share of government spending and total GDP.
B. Analysis Report
(3–4 pages; use subheadings for clarity)
1. Nominal vs. Real GDP
o Why nominal > real, magnitude difference, inflation effect.
2. Largest & Smallest Components
o Identify which category dominates (likely consumption) and which lags (likely
net exports).
3. Gross Private Domestic Investment
o Define and explain what it measures, significance for future growth.
4. Net Exports
o Explain why it’s negative and what this says about trade balance.
5. National Defense Spending
o Show calculations, interpret significance.
6. Impact of Current Events
o Tie to inflation, interest rates, consumer demand, and global trade tensions.
o Use a recent news article (within the last month) for short-term vs. long-term
GDP growth.
7. Reflection Paragraph
o What you learned and application to workplace/everyday life.
Part 2: Income Approach to Calculating GDP
A. Data Collection & Presentation
Table 3: Most recent values for—
o GDP
o GNP
o Net National Product (NNP = GNP – Depreciation/Consumption of Fixed
Capital)
o National Income (NI)
o Personal Income (PI)
o Disposable Personal Income (DPI)
o Personal Savings
B. Analysis Report
(3–4 pages; use subheadings)
1. GDP vs. GNP
o Define and explain differences, required calculations.
2. Significance of GNP
o Tie to U.S. global investments and current events.
3. National Income
o Definition, what it measures, comparison with GNP.
4. Largest Component of NI
o Identify category from BEA data.
5. Current Economic Impact
o Effects of inflation, employment, wages, productivity.
o Use recent news article to discuss NI trends (short-term and long-term).
6. From NI → PI → DPI → Savings
o Show calculations (stepwise).
7. Significance of PI, DPI, Savings
o Interpretation in the context of consumer spending power, inflation, and interest
rates.
8. Reflection Paragraph
o Personal learning outcomes and relevance for real-world decision-making.
Conclusion
Summarize main findings from expenditure and income approaches.
Highlight how GDP components reveal economic strengths/weaknesses.
Reinforce the importance of monitoring these indicators for policy-making and business
decisions.
References (APA 7th Edition)
Required readings:
o OpenStax textbook chapters 6 & 7
o Concepts and Methods of the U.S. National Income and Product Accounts
o Measuring the Economy: A Primer on GDP and the NIPA
Primary data source:
o Bureau of Economic Analysis ([Link])
Supporting data:
o Bureau of Labor Statistics ([Link]) – inflation, employment context
News sources (must be within the last month):
o The Wall Street Journal ([Link])
o Financial Times ([Link])
o Bloomberg ([Link])
o Reuters ([Link])
o New York Times – Business/Economy ([Link])
o CNBC – Economy ([Link]/economy)
🔑 Key Notes for Scoring an A+
1. Strict use of most recent BEA data (never outdated estimates).
2. Tables must be clearly labeled (e.g., Table 1: Nominal vs. Real GDP Components,
Source: BEA, 2025).
3. Focus on analysis, not just numbers — interpret what the data means.
4. Use credible, timely news sources (within the last month).
5. Avoid first-person → write in formal academic/professional style.
6. Cite everything in APA 7th edition (including data tables and news articles).
7. Excel file with calculations should be neat and organized.