Key Concpepts: Measures of Output and Income, Nominal and Real Measures, Flows of Income and Expenditures

Bureau of Economic Analysis—National Accounts Data

Review the current "GDP news releases" from the Bureau of Economic Analysis.  Scroll down the "BEA News Release" page to examine the current output data (e.g. Real GDP & Current-Dollar GDP) and the statistical information outlined in Tables 1–3.

• Explain why output growth measure is different between Gross and Real GDP figures (Hint. Gross domestic purchase price index). 
• Describe the U.S. economic output performance measured in terms of "real" GDP growth rate since 1997 (Table 1 under "GDP News Release"). When did the United States' economic output performance begin to decline precipitously?
• Calculate the "Personal Consumption Expenditure" share of the current U.S. GDP (Table 3 under "BEA News Release") Explain why personal consumption is an important engine of the U.S. economy.